Heidi Company is considering the acquisition of a machine that costs $549,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $105,000, and annual operating income of $84,975. The estimated cash payback period for the machine is (round to one decimal point)? a.6.5 years b.5.2 years c.6.5 years d.6.0 years

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A:

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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.