4. Best Flight Inc. is considering three mutually exclusive alternatives for implementing an automated passenger check-in counter at its hub airport. Each alternative meets the same service requirements, but difference in capital investment amounts and benefits exists among them. The study period is 10 years, and the useful lives of all three alternatives are also 10 years. Market values of all alternatives are assumed to be zero at the end of their useful lives. If the airline's MARR is 10% per year, which alternative should be selected in view of the cash-flow diagram shown below: Alt A: Year end 1-10 years Cash Flow -390K 69k Alt B Year end 1-10 years Cash Flow -920k 167k Alt C Year end 1-10 years Cash Flow -660K 133.5k

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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.