7. An investment is expected to produce the cash flows of $15,000, $13,000, and $18,000 at the end of the next three years. If the required rate of return is 17.5%, the present value of this investment is closest to: A. $31,223. B. $32,648. C. $33,277. 8. Given an 8.5% discount rate, an asset that generates cash flows of $100 in Year 1, -$200 in Year 2, $-100 in Year 3, and is then sold for $1,500 at the end of Year 4, has a present value of: A. $906.35. B. $926.35. C. $1,024.22. Please provide an accurate answer.

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A:

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A: Formulas:

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.