You plan to buy equipment for $100,000 to be used for your mass production line of your business. The equipment increased the line’s productivity producing an additional net income of $10,000 annually. If the useful life of the machine is 4 years, what should be its resale value to justify the capital investment? You should make a 15% per annum ROI (Return on Investment)

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A: Referencehttps://www.investopedia.com/terms/n/npv.asp

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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.