Solve step by step in digital format, explain From the data given in the table, analyze through the present value method which of the two options is the most convenient considering a rate of 5% Option A Initial cost -16,700 Annual operating cost -990 Rescue value 8600 Useful life 10 Option B -18,500 -1270 9500 10

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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.