investment costs $21,259 and will generate cash flow of $7,000 annually for four years. The firm’s cost of capital is 10 percent. Use Appendix D to answer the questions. What is the investment’s internal rate of return? Round your answer to the nearest whole number.   % Based on the internal rate of return, should the firm make the investment? The investment  made. What is the investment’s net present value? Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar. $   Based on the net present value, should the firm make the investment? The investment  made.

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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.