An investment opportunity has the potential of generating revenue per year with associated probabilities for the next 5 years as shown below. The salvage value at the end of 5 years is zero. The potential revenue in any given year is independent of any other year. Determine the mean of the present worth, using an interest rate of 12%.    Potential Revenue               Probability            $20,000                        0.30            $30,000                        0.40            $50,000                        0.20            $60,000                        0.10

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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.