ectrical submersible pump, the production will continue only for eight years and the salvage value is $5,000. If we assume that the net revenue under natural flow conditions is $20/bbl and the net revenue with electrical submersible pumps

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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.