he management of Digital Waves, Inc. is considering a project with a net initial cost of $115,000 and an annual net cash inflow estimated at $30,000 over the project's life of 5 years. The company has a cost of capital of 6 percent. The project under consideration has risk that is typical for the company.What is the project's IRR? Show enough trials to indicate that you understand the process. Show that your answer equates the cost of the project to the present value of future cash flows.

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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.