100,000 TL is priced by a machine dealer. The purchaser of the machine estimates that the useful life of the machine will be 12 years. At the end of 12 years, the machine is expected to be sold for 90,000 TL. The machine will result in annual costs of 6,000 TL during its 12-year useful life, as well as save 15,000 TL annually. Since the phys rate is expected to be 9%, how much should the buyer give to the machine whose price is determined as 100.000 TL by the seller?

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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.