Best Industries is considering an investment project that has the following cash flows: Year 0…………… $ -1,200 Year 1………………. 200 Year 2……………….. 200 Year 3……………….. 800 Year 4………………… 300 The company’s discount rate for such calculations is 10%   1. For Best Industries what is the project’s IRR? a. 10.00% b. 11.92% c. 22.75% d. 8.40% 2. For Best Industries what is the NPV? a. $153 b. $ -46.94 c. $375.44 d. $ -153.06 3. Internal rate of return is also: a. Yield b. Rate of return c. Discount rate that makes the NPV equal to zero d. All of the above

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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.