The following data are accumulated by Patterson Inc. in evaluating two competing capital investment proposals: Line Item Description Project C Project T Amount of investment $125,000 $140,000 Useful life 10 years 12 years Estimated residual value $5,000 $10,000 Estimated total income over the useful life $65,000 $108,000 Determine the expected average rate of return for each project. Project C fill in the blank 1% Project T fill in the blank 2%

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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.