ABC Corporation is considering the following three investment projects:   Project P Project Q Project R Investment required 15,000 50,000 71,000 Present Value of Cash Inflows 15,150 54,500 75,970 The only cash outflows are the initial investements in the projects. a. Determine the Project Profitability Index of Project P? b. Determine the Project Profitability Index of Project Q? c. Determine the Project Profitability Index of Project R?

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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.