A company is planning to purchase a new machine to expand its production. The machine is  costing OMR10800. The following cash inflows are expected to come for the machines. Calculate Net Present Value for Machine A using NPV given the rate of discounting to be 6.08%   Years Machine A 1 2100 2 2200 3 2500 4 3600     Select one: a. 5350 b. None of the options c. (-1000.51) d. (-1928.09) e. 7906.21

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Q: 3

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A:

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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.