Six years ago, ABC Company invested $45,525 in a new machinery. The investment in net working capital was $5,065 which would be recovered at the end of the project. Today, ABC Company is selling the machinery for $19,722. Today, the book value of the machinery is $12,039. The tax rate is 27 percent. What are the terminal cash flows in Year 6?

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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.