Complete the following problems using the information given below: o Total Project Cost: o Lender Standards: $50,000,000 Interest Rate: 9% Amortization Rate: 20 yrs Debt service coverage ratio: 1.25 Debt to cost ratio: 70% o Projected annual cash flow of project: Investors' Hurdle Rate: $4,250,000 12% Tax Rate: 30% Cap Rate Sale in Year 10 9%

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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.