Your company is expected to earn (as a cash flow) $3 million next year, $3.06 million the following year, $3.1212 the year after that, and it will continue to grow by 2% per year indefinitely. Using a discount rate of 8%, what is the value of the company? (Do not round intermediate calculations. Report your result in millions of dollars. Round the final answers to 2 decimal places. Omit $ sign and the word “million” in your response. For example, if your answer is $1,234,567 just write 1.23.)

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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.