The Border Patrol is considering the purchase of a new helicopter for aerial surveilance of the New Mexico-Texas border with Mexico. A similar helicopter was purchased 4 years ago at a cost of $1,400,000. At an interest rate of 7% per year, what would be the equivalent value today of that $1,400,000 expenditure?

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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.