Litton Company invested in a two year project which produced a net present value of P 5,760 discounted at a cost of capital rate of 12%. The project produced cash flows from operations net of income taxes of P 60,000 in the first year and P 70,000 in the second year. The PV of P 1 for one period at 12% is .893 and for two periods is .797. How much does the project cost? A. P 103,610 B. P 109,370 C. P 126,090 D. P 132,510

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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.