BURNER Co. is considering two mutually exclusive projects, Project A and Project B. The projects have the following cash flows: Project A                   Project B  -100,000                   -190,000 30,000                      30,000 35,000                      35,000 40,000                      100,000 40,000                      100,000    The two projects are equally risky. At what weighted average cost of capital would the two projects have the same net present value (NPV)?

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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.