The rate of return for alternative X is 18% per year and for alternative Y is 17%, with Y requiring a larger initial investment. If a company has a minimum attractive rate of return of 16%: (a) The company should select alternative X (b) The company should select alternative Y (c) The company should conduct an incremental analysis between X and Y in order to select the better alternative (d) The company should select the do-nothing alternative

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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.