Use the following table,     Present Value of an Annuity of 1 Period     8%   9% 10% 1   0.926   0.917   0.909   2   1.783   1.759   1.736   3   2.577   2.531   2.487   A company has a minimum required rate of return of 9%. It is considering investing in a project which costs $300000 and is expected to generate cash inflows of $140000 at the end of each year for three years. The net present value of this project is A. $354340. B. $54340. C. $70000. D. $35434.

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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.