A company requires an initial investment of $75,000 with a residual value of $12,500 after five years.  The estimated annual returns over the five years are $20,000 at 12% compounded annually. What is the net present value of this project? ____________ b.  What is the project’s internal rate of return (IRR)?  __________

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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.