If a chemical olant is paying 43% in income taxes and wants to purchase a ball mill designed to last for 20 years at a cost of $76,000, with no salvage value. Annual income generated will be $24,000 and annual expenditures will be $13,000. Using single line depreciation and a 10% interest rate, what is the 20 year after-tax present worth of the project?

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Q: What are the Equivalent annual savings?

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Q: what is the after tax salvage value?

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Q: The net present value if the equipment were purchased is?

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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.