Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $124,000 to provide short-haul earth-moving services. The company sold it today for $45,000. Operating and maintenance costs averaged $11,300 per year. A complete overhaul at the end of year 3 costs an extra $3600. Calculate the annual cost of the truck at i = 8% per year.

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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.