You are considering a safe investment opportunity that requires a $780 investment​ today, and will pay $870 two years from now and another $640 five years from now. a. What is the IRR of this​ investment? b. If you are choosing between this investment and putting your money in a safe bank account that pays an EAR of 5% per year for any​ horizon, can you make the decision by simply comparing this EAR with the IRR of the​ investment? Explain.

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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.