Years Amount $80,000 70,000 1-6 60,000 50,000 10 40,000 If purchased, the restaurant would be held for 10 years and then sold for an estimated $700,000.

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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.