Jamie and Raquel are both considering investing in a project with the following cash flows. Jamie requires a 9% return. Raquel requires a return of 16%. They can both invest, only one or neither invest in the project. If they both invest, they will share the cash flows equally and each invest half the money. Who, if either, should invest in this project?                 Cash flow Year 0      $-25,000 Year 1      $13,700 Year 2      $18,400 a) Jamie, but not Raquel b) Raquel, but not Jamie c) Neither Jamie nor Raquel d) Both Jamie and Raquel

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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.