ThreeRivers Corp. is considering the purchase of a new piece of equipment with a life of 12 years. The internal rate of return of the project is 20%.  ThreeRivers has a required rate of return (hurdle rate) of 17%.   The project would have:       Multiple Choice   a net present value greater than zero.   a payback period more than 12 years.   a net present value of zero.   an accounting rate of return greater than 17%.

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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.