suppose the firm's WACC is stated in nominal terms (meaning that inflation expectations are included in the WACC), but the project's expected cash flows are expressed in real dollars (meaning they are not adjusted upward for inflation expectations). In this situation, other things held constant and assuming a positive rate of inflation, the calculated NPVwould

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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.