A company that manufactures clear PVC pipe is investigating two production options with the following cash flow estimates.

Batch Continuous First cost, $ 80,000 130,000 Annual cost, $/year 55,000 30,000 Salvage value, $ 10,000 40,000 Life, years 3 to 10 5 The chief operating officer (COO) has asked you to determine if the batch option would ever have a lower annual worth than the continuous flow system using interest rates over a range of 5% to 15%
for the batch option, but only 15% for the continuous flow system. The batch process can be used anywhere from 3 to 10 years. (Note: The continuous flow process was previously determined to have its lowest cost over a 5-year life cycle.)