NCF(A) NCF(B) NCF(C) Initial investment $600,000 $800,000 $470,000 Planning horizon 10 years 10 years 10 years Salvage values Annual receipts $70,000 $130,000 $65,000 $400,000 $600,000 $260,000 Annual disbursements $130,000 $270,000 $70,000

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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.