A 2,500 square foot house in New Jersey costs $1,700 each winter to heat with its existing​ oil-burning furnace. For an investment of $4,500​, a natural gas furnace can be​ installed, and the winter heating bill is estimated to be $1,000. If the​ homeowner's MARR is 8​% per​ year, what is the discounted payback period of this proposed​ investment?

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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.