3.4 Amber was evaluating the feasibility of a project that has an initial investment of $205,000 and subsequent investments of $155,000 in the 1st and 2nd years. From the 3rd year onwards, it will generate cost savings of $200,000 every year for 8 years. a. If the project has a terminal value of $100,000, what is the Internal Rate of Return (IRR)? b. Should the project be accepted if the company's cost of capital is 23.00%? Yes/No Kindly use all the decimals. DO NOT ROUND

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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.