METHODS THAT CONSIDER TIME VALUE OF MONEY   Two investment proposals have been made and the following data thereon are given:   Project ALPHA Project BETA Investment P123,417 P155,934 Depreciable assets included in the investment figure 60,000 72,000 Economic life 8 years 12 years Annual sales revenue P65,000 P78,000 Annual out-of-pocket operating cost 36,000 42,500   Income tax rate 35% Cost of capital 10%   Determine which proposal is the better one based on:   a.   Internal rate of return b.   Net present value c.   Profitability index d.   Discounted payback period

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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.