Your firm needs a computerized machine tool lathe that costs $50,000 and requires $12,000 in maintenance for each year of its three-year life.  After three years, this machine will be replaced.  The machine falls into the MACRS three-year class life category, and neither bonus depreciation nor Section 179 expensing can be used.  Assume a tax rate of 21 percent and a discount rate of 12 percent.  If the lathe can be sold for $5,000 at the end of year three, what is the after-tax salvage value

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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.