Kansas furniture Corporation (KFC) is evaluating a capital budgeting project that costs $34,000 and is expected to generate after-tax cash flows equal to $14,150 per year for three years. KFC's required rate of return is 12 percent. Compute the projects (a) net present value (NPV) and (b) internal rate of return (IRR). (c) Should the project be purchased?

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A: GIVEN, initial investment = $9670 years = 5 after tax cashflow = $3000 r= 8%

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Q: NPV and IRR Benson Designs has prepared the following estimates for a long-term project it is…

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A:

Q: Determine the NPV for the project.

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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.