June Co. is evaluating a project requiring a capital expenditure of $620,000. The project has an estimated life of four years and no salvage value. The estimated net income and net cash flow from the project are as follows: Year Net Income Net Cash Flow 1 $45,000   $200,000   2 85,000   240,000   3 5,000   160,000   4 15,000   170,000     $150,000   $770,000   The company's minimum desired rate of return is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively. a.  Determine the average rate of return on investment, giving effect to depreciation on the investment. Round your answers to two decimal places. fill in the blank 1 % b.  Determine the net present value. $fill in the blank 2

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A: Note: As per the policy, we are supposed to solve first three subparts at a time, Kindly repost the…

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A:

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A:

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A:

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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.