A manufacturing company is planning to install an equipment having a first cost of $90K and a salvage value, after 15 years, of $10,520. The company uses an interest rate of 10%. Find the PW of the depreciation deductions for straight-line, SOYD, double-declining balance. Rank the strategies in order of their attractiveness. Identify/determine the best method.

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A: Initial investment is the amount of cash outflow occur at the start of the project or at year 0.

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A:

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A: Please see the next step for the solution

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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.