A company that manufactures air-operated drain valve assemblies currently has $85,000 available to pay for plastic components over a 5-year period. If the company spent only $42,000 in year 1, what uniform annual amount can the company spend in each of the next 4 years to deplete the entire budget? Let i = 10% per year.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
A company that manufactures air-operated drain
valve assemblies currently has $85,000 available
to pay for plastic components over a 5-year period.
If the company spent only $42,000 in year 1, what
uniform annual amount can the company spend in
each of the next 4 years to deplete the entire budget?
Let i = 10% per year.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
