Deere Construction just purchased a new track hoe attachment costing $12,500. The CFO expects the implement will be used for 5 years, at which time its salvage value is estimated to be $4000. Maintenance costs are estimated at $0 the first year, increasing by $100 each year thereafter. If a 12% interest rate is used, what is the equivalent uniform annual cost of the implement?

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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.