repare a schedule that shows the applicable cash flows and other relevant items for this decision                         2 Compute the payback period for the new machine                                   3 Compute the Accounting Rate of Return (ARR) for the new machine

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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.