A project is expected to cost $250,000, with the capital due immediately. Four annual cash flows are promised at the end of each respective year from the project as follows: Year 1:  $50,000 Year 2:  $100,000 Year 3:  $100,000 Year 4:  $100,000 The hurdle rate for the project is 15%. The manager will only use NPV for the project decision. 5. WHAT is the NPV of this project? 6. What is the Payback? 7. What is the IRR? 8. Do you accept the project?

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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.