You are considering the purchase of a new high-efficiency machine to replace older machines now. The new machine can replace four of the older machines, each with a current market value of $600.The new machine will cost $5000 and will save the " equivalent of 10,000 kWh of electricity per year.' After a period of 10 years, neither option (new or old) will have any market value. If you use a beforetax MARR of 25% and pay $0.075 per kilowatt-hour, would you replace the old machines today with the new one

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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.