Dover company is considering an investment project in which a working capital investment of $30,000 would be required. The investment would provide cash inflows of $10,000 per year for 6 years. If the company's discount rate is 18% and if the working capital is released at the end of the project, then the project's net present value is: a)$4,980 b)($4,980) c)$16,080 d)($12,360)

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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.