Fruit Packers uses packing machines to prepare its products for shipping. Each machine  costs $136,000 and lasts about 4 years before it needs to be replaced. In addition, the  operating cost per machine is $6,000 a year. What is the equivalent annual cost of one  packing machine if the required rate of return is 12%? Ignore tax.  The annuity factor is 1/r-1/[r*(1+r)^n

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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.