Rotary encoder collars with targets on the face or outside diameter add speed sensing capability to rotating shafts. SKF Manufacturing expects sales of $150,000 in quarter one, increasing by $5,000 per quarter through year 5. Calculate the present worth of the sales through a 5-year period at an interest rate of nominal 20% per year compounded quarterly.

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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.