A project with an initial invest of RO25000 having a estimated life of 5 years and a scrap val RO 2000 has the following cash inflows. 1 2 3 4 5 5000 10000 12000 4000 3000 What will be the NPV with a discount rate of 9% as given below 1 2 3 4 5 0.917431 0.84168 0.772183 0.708425 0.649931 O a. All the options are wrong O b. 4072.04 O c. 4819.37 O d. 3353.51

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A:

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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.