calculate the capitalized cost of a project that has an initial cost of 8 000 000 and an additional cost of 250,000 at the end of every 8 years the annual operating costs will be 150,000 at the end of every year for the first 5 years and 200,000 thereafter in addition there is expected to be recurring major rework cause of 500,000 every 13 years. Assume i=12%. draw the complete diagram.

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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.