The investment cost of a new product line is $300000. The annual operating cost is estimated to be $150000. The project life is 6 years and the it will cost $18000 to dispose it at the end of its life. The company’s MARR is 14%. What is the minimum annual revenue to make this project profitable?

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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.