The initial investment cost of a machine is 9000 TL and the useful life of the machine is 6years and annual operating costs are 5000 TL. The initial investment cost of the machine is 16000 TL and the useful life of the machine can be sold for 4000 TL. Compare two machine based on present value analysis based on an analysis period annual interest rates 10% Alternative-1 Alternative-2 First investment 4500 tl 10000 tl www www Life expectancy 12 years 24 years Annual expenses 1000 tl 720 tl www

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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.