An engineer is planning to purchase a CHB machine worth 180,000 that can produce a uniform annual revenue of 25,500 with a salvage value of 5,000 after 6 years. If the engineer is expecting to earn at least 15% of his capital, should he invest? Show your conclusion using present worth method and future worth method. SHOW THE SOLUTION AND DO NOT USE EXCEL.

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.