jects A and B are mutually exclusive projects with unequal lives. The cost of capital is 12% for both projects. 0 1 Project A: -20 35 0 1 2 3 Project B: -100 35 40 60 Apply replacement chain to project A so that to equalize its life span to that of project B. After having done so, the cash flows of the modified project A for years 0, 1, 2, and 3 are correspondingly: A. -20, 35, -20, 35 B. -20, 15, 15, 35 C. -20, 35, -15, 35 D. -20, -15, 20, 35

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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.