Of the following mutually exclusive alternatives, select the best one by rate-of-return analysis method, if the MARR is 10% per year and the projects have a useful life of 15 years. Make individual investment and extraordinary investment analysis. Would appreciate if Excel is not used! 2 3 4 7 Initial inversion S Annual maintenance Cost S 250,000 190,000 240,000 265,000 | 255,000 | 240,000 265,000 15,000 16,000 14,000 17,000 18,000 13,000 12,000 Annual Income $ 52,000 49,000 68,000 50,000 81,000 77,000 45,000

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Q: 170

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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.