An investment of P8.5 M is expected to yield an annual income of P2.8 M. Determine the payout period in years based on the following estimates. Annual depreciation = P1.0 M Operational expenses = P0.6 M Taxes and insurance = P0.2 M Miscellaneous expenses = P50,000 Select one: a. 8.90 years b. 7.12 years c. 4.36 years d. 5.78 years

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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.