L& T Corporation is considering an investment proposal in which a working capital investment of $15,000 would be required. The investment would provide cash inflows of $2,000 per year for six years. The working capital would be released for use elsewhere when the project is completed. If the company's discount rate is 10%, the investment's net present value is closest to:    The PV factor  for $1 annuity for six years at 10% is 4.355 and PV of $1 over 6 years at 10% is 0.564       A. $6,290     B. $(6,290)     C. $3,000     D.  $2,170

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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.