A project capitalized for ₱25,000 invested in depreciable assets will earn a uniform, annual income of ₱29647 in 10 years. The cost for operation and maintenance total ₱5,000 a year, and annual taxes and insurance will cost 5% of the investment. The company expects its capital to earn 14% before income taxes. Using the Annual Worth method, what is the total annual cost of the project?

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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.