Suppose a company like Target Distribution Centers is looking at 3 mutually exclusive alternatives for locations to build their new Distribution Center. Scenario 1 is a DC in Akron. CAPEX Cost $18 million, project NPV $3.8 million Scenario 2 is a DC in Canton. CAPEX is $14.2 million, project NPV is $2.8 million Scenario 3 is a DC in Warren, CAPEX is $11.8 million, project NPV is $3.3 million What would be your recommendation? Group of answer choices a. Scenario 2 b. Scenario 3 c. None of the above d. All of the above e. Scenario 1

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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.