A company is considering the purchase furniture at costing Rs 120,000 that would save Rs 30,000 each year for five years. The equipment could be sold at the end of its useful life for Rs 15,000. The company requires every project to yield a return of 10% or more otherwise they will be rejected. Should this equipment be purchased? a. Calculate the first NPV at 9%

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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.