A project’s cash flows are listed below. Assume the appropriate discount rate for this project is 14%. The profitability index for this project is closest to ________. Year Cash Flow 0 -8000 1 3200 2 3200 3 3200 4 3200 (a) 0.17 (b) 0.25 (c) 0.66 (d) 0.18

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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.