ent of Public Works and Highways is considering the construction of new highway through a scenic rural area. The road is expected to cost 67 million pesos with annual upkeep estimated at 670 thousand pesos. The improved accessibility is expected to result in additional income from tourists of 6.7 million pesos per year. The road is expected to have a useful life of 25 years. If the rate of interest is 18%, should the road be constructed? Solve using B/C ratio method

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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.