Improvements with an initial investment cost of $ 67,000 will be made in an assembly line. Yearly maintenance costs are $ 3,500, major maintenance every 3 years is $ 6,000 each. is worth. As the useful life of these improvements is expected to be 12 years, the interest rate Find the present value of costs when the ratio is 8%. (Answer: $ 107,304)

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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.