Alternative A B $250 Capital investment (thousands) Uniform annual savings $40.69 $44.05 $131.90 (thousands) $375 $500 Useful life 10 20 5 (years) Computed IRR (over useful life) 10% 10% 10%

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A:

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Q: vin

A: The net present value of both the options can be calculated as follows :

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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.