5. A manufacturing company purchased a machine with first cost of P70,000. The company wants to buy an option that will allow it to purchase the machine for the same price of P70,000 for up to 1 year from now. If the company's MARR is 10% per year, the maximum amount the company should pay for the option is closest to: * O P 5850 O P 6365 P 6845 O P 7295

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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.