Suppose your given the cash flow data of 3 project alternatives in the table below with 3 years of useful lives each and a study period of 3 years under consideration. Alpha Beta Gamma Investment Cost $ 70,000 $ 50,000 $ 120,000 1st Year- Revenue $ 40,000 $ 30,000 $ 60,000 2nd Year- Revenue $ 50,000 $ 40,000 $ 60,000 3rd Year- Revenue $ 60,000 $ 50,000 $ 60,000 Salvage Value $ 22,750 $ 5,000 $ 46,000 What project would you choose if MARR is 9.762% compounded semi-annually, using a. Present Worth Method ? b. Internal Rate of Return Method ?

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A:

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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.