KUST is evaluating project on basis of internal rate of return (IRR) and below project Z is under consideration. Years 0 1 2 3 4 5 Cash Flow in Rs. (500,000) 160,000 160,000 160,000 160,000 50,000 Calculate Internal Rate of Return (IRR) for above project Z.

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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.