Design A Design B $1,000,000 $2,000,000 MV at end of useful life $1,000,000 $1,100,000 $400,000 Capital investment Annual revenues less $200,000 expenses MACRS property class Useful life Б уears 7 years 5 years 6 уears

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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.