The Webster Corp. is planning construction of a new shipping depot for its single  manufacturing plant. The initial cost of the investment is $1 million. Efficiencies from  the new depot are expected to reduce costs by $100,000 per year forever. The  corporation has a total value of $60 million and has outstanding debt of $40 million.  What is the NPV of the project if the firm has an after tax cost of debt of 6% and a cost  equity of 9%?  A. $428,571  B. $565,547  C. $1,000,000  D. None of these is the correct NPV

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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.