A new investment project is proposed. The required initial investment is $ 50,000 and the expected salvage value is $ 10,000 at the 3nd of 3 years. A 15 % return on investment is desired. What should be the minimum annual net cash flows over three years?

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Q: 16

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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.