12. An investment requires working capital equal to 9% of the year’s sales revenue to be in place at the start of the relevant year. The sales revenue for the four year project is forecast as £100,000, £90,000, £110,000 and £120,000. What is the cashflow relating to working capital at time 2? A £900 inflow B £900 outflow C £1,800 outflow D £9,900 outflow

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A: The accounting rate of return (ARR) is a formula that shows the percentage rate of return…

Q: An investment is expected to produce the following annual year-end cash flows: Year 1 Year 2 Year 3…

A: Initial cost-$13,700YearCash flow1$5,000.002$1,127.003$0.004$5,240.005$6,240.006$1,363.40

Q: inital

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A: Year cashflow pvf 9% Pv 1 (7000) 0.917 (6419) 2 (2000) 0.842 (1684) 3 13000 0.772 10036 4…

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A: Accounting rate of return = Average annual income / Initial investment.

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A: Initial investment (PV) = $14,000Future value (FV) = $19,320Number of years = 1 years

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A: Formulas:

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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.