Salalah Methanol company management is considering three competing investment Projects Option1: Starting a unit in Sohar, Option 2: Starting a unit in Musandam and Option 3: Starting a unit in Muscat The intial investment for all the projects are 15000 and the cost of capital is 5.05% Year Sohar Musandam Muscat 1100 2160 3225 3100 3260 4250 3800 4360 5475 4 4600 5460 6300 5100 6900 7000 Use the information below and help the management in choosing the most desirable Project using a. Payback period b. Discounted payback c. Net Present value d. Profitability Index. You have to suggest to the management which project to choose and why 123 LO

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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.