A company is considering expanding their production capabilities with a new machine that costs $88,000 and has a projected lifespan of 9 years. They estimate the increased production will provide a constant $11,000 per year of additional income. Money can earn 1.8% per year, compounded continuously. Should the company buy the machine?

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Q: his own enterprise

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A:

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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.