the department of public works and highways (dpwh) is considering the construction of a new highway through a scenic rural area. the road is expected to cost p50 million with annual maintenance estimate at p400,000. the improved accessibility is expected to result in additional income from tourist of p7 million per year. the road is expected to have a useful life of 25 years. if the rate of interest is 15%, should the road be constructed? determine b/c ratio.

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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.