The following data have been estimated for two feasible investments, A and B, for which revenues as well as costs are known and which have different lives. If the minimum attractive rate of return is 10%, solve to find which feasible alternative is more desirable by using equivalent annual worth methods. Use the repeatability assumption. A B Investment(First) cost, Rs 3,500 5,000 Annual Revenue, Rs 1,900 2,500 Annual Cost, Rs 645 1,383 Useful life(years) 4 8 Salvage value 0 0

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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.