proposed processing plant requires a fixed-capital investment of Php 9,008,632 and a working capital of Php 1,750,966. Annual depreciation is 6% of the fixed-capital investment. If the annual profit is Php 2,019,826, determine the payback period.

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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.