Porter Company is analyzing two potential investments. Initial investment Net cash flow: Year 1 Year 2 Year 3 Year 4 Project X $ 80,640 27,500 27,500 27,500 0 Project Y $ 67,000 4,700 29,500 29,500 23,000 The payback period in years (rounded to 2 decimal places) for Project X is:

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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.