ACCOUNTING RATE OF RETURN XYZ Company is looking to invest in some new machinery to replace its current malfunctioning one. The new machine costs ₱420,000 and generates income of ₱1,380,000 annually for 12 years.   What is the ARR of the new machinery? (Round your answer to two decimal places) *

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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.