Jose is considering investing $100 in a project that has cash flows of $10 in one year, $0 in two years and $110 in three years.  Jose's opportunity cost of capital is 10% and when running an NPV analysis on these cash flows, the NPV turns out to be zero!  Based on this, the IRR is: a) 10% b) Infinity c) 0%

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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.