Year Market value, $ Operating cost, $ 30,000 1 25,000 -15,000 -15,000 2. 14,000 3 10,000 -15,000

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A: Capitalization cost means total cost incurred in the project or investment. Some part of the cost…

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A: Net Present Value is the present Value of sum of Cash inflows less sum of cash outflows.

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Q: discounted payback method.

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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.