Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Compute the payback period for this investment (round years to two decimals). Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows . $60,000 $40,000 $70,000 $125,000 $35,000 $330,000

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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.