Assume that you are trying to replace an old machine that was purchased 10 years ago at a cost of $25,000. It has a current market value of $4,000. You can overhaul the machine for $1,000. This would extend the life of the machine for another 3 years the following O&M costs End of Market O&M

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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.