5. Calculate the present worth of a machine which costs $74000 initially and will have a $14000 salvage value after 11 years. The operating cost is $10000 at the end of yearl and amounts increasing by 10% each year. Use an interest rate of 14% per year compounded continuously.

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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.