The annual budget for your facility has already been approved.

Two months into the budget period, you need to introduce a new item of plant or machinery to improve one of the processes in your facility.

For the new item of plant or machinery, select a regularly used, existing item in your facility, and use that for the purposes of this assessment task. (In other words, assume your facility does not have this item and you have decided it is now required to improve processes in the facility.) Find out some general information about the item including its initial cost, ongoing maintenance needs and costs, etc.

How would you go about funding this item (or requesting funding)?

What is the initial cost?

What are the anticipated ongoing costs per year - ongoing maintenance needs and costs?

How will the purchase and ongoing costs affect your current year operational budget and next year's operational budget.

How will the purchase affect the organisation's financial statements (profit and loss, balance sheet and cash flow statement) for the year of purchase.

List the benefits of purchasing the item.

Assume there is a financial savings of 15% of the purchase price per year over a period of five years. What is the payback period? What is the net present value? For this calculation, consider only purchase price and savings. Do not consider the ongoing maintenance costs.

Please answer all parts of this question and provide an idea for the last question as well. Thanks