Fablab Mindanao purchased a water jet cutter in which their total manufacturing cost is expected to decrease due to an increased productivity as shown on the table below. 2 3 4 | 7 8 Year Cost, PhP 200 195| 190| 185 | 180| 175 | 170 | 165 1000 1 6 a) Draw the Cash Flow Diagram b) Determine the equivalent annual cost at an interest rate of 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.