Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 7 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively. Time: 1 2 3 4 5 Cash flow: -$4,700 $1,170 $2,370 $1,570 $1,570 $1,370 $1,170 Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.) Discounted payback years

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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.