Ahmed has recently invested his money and is expecting the following cash flows at the end of each of the next three years, 788, 737 and 742 respectfully. This will be followed with a constant return of 492 from year 4 till 6. Using a discount rate of 5% find the PV of this cash flow.

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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.