Barney's Liquids and Aunt Bee's Lemonade plan to expand their international partnership for the marketing and distribution of ready-to-drink tea products by adding 11 countries to their current markets.  If the agreement is reached, operations are expected to begin 2 years from now.  The snack and beverage company forecasts that the agreement will bring additional revenue of $80 million for the next  7 years. (i.e., start from the end of year 3), What is the present value now (t =0) of the total revenue if the interest rate of 10% per year?

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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.