Improvements will be made in an assembly line with an initial investment cost of 67,000 TL. Annual maintenance cost is 3,500 TL, major maintenance is worth 6,000 TL every 3 years. Find the present value of costs when the interest rate is 8%, as the useful life of these improvements is expected to be 12 years.

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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.