Benson Designs has prepared the following estimates for a​ long-term project it is considering. The initial investment is ​$26,020​, and the project will yield cash inflows of $8,000 per year for 5 years. The firm has a cost of capital of 8​%.   a.  Determine the net present value​ (NPV) for the project. b.  Determine the internal rate of return​ (IRR) for the project. c.  Would you recommend that the firm accept or reject the​ project?

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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.