CAPITAL BUDGETING 3. How much will you need to invest today at 10% to have $10,000 six years from today? A. $7,050 B. $17,715 C. $5,645 D. $5,584 4. Calculate the present value of $216,000 to be received in seven years if the discount rate is 16%. A. $73,159 B. $61,051 C. $241,920 D. $76,421 5. Use an interest rate of 14% to calculate the present value of $829,000 which will be received in 15 years. A. $116,143 B. $60,601 C. $773,733 D. $552,667

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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.