What is the capitalized cost of a calendering machine that costs ₱1231,000 upon purchase, requires ₱412,000 for annual operations and maintenance, and an estimated ₱89,000 for parts replacement every 5 years? Interest rate is at 4.5% per year and that the machine is assumed to last for a very long time or forever

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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.