Financial Manager of Agusta Company is considering two projects (project A and project H), which have cash flows as follows: Year Cash Flow of Project A (in $) Cash Flow of Project H (in $) 0   -100   -100 1     10     70 2     60     50 3     80     20 Agusta Company’s cost of capital is 10 percent.   Calculate payback, NPV, IRR, and MIRR for both projects.

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A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

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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.