Using a compound interest of 8%, find the equivalent uniform annual cost for a proposed machine that has a first cost of ₱100,000 with an estimated salvage value of ₱20,000 and an estimated economic life of 8 years. Annual maintenance will amount to ₱2,000 a year and periodic overhaul costing ₱6,000 each will occur at the end of the second and fourth year.

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Q: what is the projects equivalent annual cost, or EAC?

A:

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Q: Using a compound interest of 8%, find the equivalent uniform annual cost for a proposed machine that…

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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.