A new packing machine will cost $57,000. The existing machine can be sold for $5000 now and the new machine for $7500 after its 10-year useful life. If the new machine reduces annual expenses by $5000, what is the present worth at 25% of this investment? (a) − $18,388 (b) − $33,340 (c) − $34,145 (d) − $38,340

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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.