Darrington Inc. is evaluating an equipment purchase which requires an expenditure of $393 today followed by an inflow of $150 in year one, $200 in year two, and $253 in year three.  What is the net present value of these cash flows to the nearest cent if the discount rate is 8%?

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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.