29. From the following data calculate NPV, IRR & PB for the following projects. Assume a required rate of return of 10 percent and a 50 tax rate. Firm has policy of charging depreciation at 25 % on diminishing balance . M N Initial outlay Salvage value Earnings before depreciation &taxes : Year 1,00,000 Nil 1,40,000 20,000 1 25000 40000 2 25000 45000 3 30000 50000 4 30000 30000 45000 5 40000 Life 5 years 5 years ----- ---

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Q: Calculate the Rate of Return of the project. Explain, how and why?

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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.