The Sampson Company is considering a project that requires an initial outlay of $75,000 and produces cash inflows of $20,806 each year for five years.  Sampson's cost of capital is 10%.    Calculate the project's IRR recognizing the fact that the cash inflows are an annuity. Is the project acceptable?  Did your calculation in this part result in any number(s) that were also calculated in part a?  What is it about this problem that creates this similarity?  Will this always happen in such cases? What is the project's NPV? Is it acceptable according to NPV rules?

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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.