Dhofar Energy Company is installing new equipment at a cost of 200000 OMR. Expected cash flows from this project over the next three years will be 125000 OMR , 150000 OMR and 175000 OMR. The company's discount rate for such projects is 14 percent. What is the project's discounted payback period?

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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.