A project that costs $4,000 to install will provide annual cash flows of $1,300 for each of the next 6 years.   a. What is NPV if the discount rate is 14%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)           b. How high can the discount rate be before you would reject the project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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A: Working note:

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Q: NPV

A: Formula to calculate NPV is: Cash flow/(1+r)^n - Initial investment

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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.