Verizon Cellgene Initial investment (first cost) Useful life in years Market value at end of useful life $20,000 $75,000 $175,000 6 12 $37,500 Annual benefits from operation Annual operating expenses $28,800 $38,800 $9,800 S11,300

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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.