A sky resort is studying a half a dozen capital improvement projects.It has collected shs.1 million for capital budgeting purposes.The following proposals and assosciated probability =indexes have been determined.The projects themselves are independent of one another. Project     Amount    Profitability A             500000        1.21 B             150000         0.95 C             350000        1.20 D             450000         1.18 E             200000          1.20 F             400000           1.05 a)With strict capital rationing,which of these investements should be undertaken? b)Is this an optimal strategy,why?

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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.