A company expects to retire an existing machine at the end of 1995 and will replace it with a new machine for the same task at an estimated cost of Php 60,000. The old machine is expected to be sold for Php 5,000 when it is replaced. To provide for replacement, the company intends to deposit the following amounts in an account earning interest at 8% compounded quarterly: Php 20,000 at the end of 1992 Php 15,000 at the end of 1993 Php 10,000 at the end of 1994 What additional amount (in Php) is needed at the end of 1995 to purchase the new machine?

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Q: Acme purchases a new delivery truck making a cash payment of $10,000, a $12,000 trade-in on the old…

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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.