Answer:
Objective and task.
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis. The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.
The budgeting method described in the question is called objective and task. It is typically used by various organizations or companies due to the fact that, it's tied directly to the strategy and tactics of a company on an annual basis. Also, it is used to set a budget for marketing efforts while anticipating on informations about the company.
Answer: Net Present Value = -$19,062
Explanation:
First, we'll compute the PV for the respective years
Present Value (Year-1)
= ![0.6211 \times [1 + (0.055 - 0.06)]^{1}](https://tex.z-dn.net/?f=0.6211%20%5Ctimes%20%5B1%20%2B%20%280.055%20-%200.06%29%5D%5E%7B1%7D)
=0.6179945
Present Value (Year-2)
= ![0.6211 \times [1 + (0.055 - 0.06)]^{2}](https://tex.z-dn.net/?f=0.6211%20%5Ctimes%20%5B1%20%2B%20%280.055%20-%200.06%29%5D%5E%7B2%7D)
=0.614904528
Present Value (Year-3)
= ![0.6211 \times [1 + (0.055 - 0.06)]^{3}](https://tex.z-dn.net/?f=0.6211%20%5Ctimes%20%5B1%20%2B%20%280.055%20-%200.06%29%5D%5E%7B3%7D)
=0.611830005
Now, we'll compute the Cash Flow for the respective years
Cash Flow (Initial)
= 
= -$209,306.07
Cash Flow (Year-1)
=
=$32,362.75
Cash Flow (Year-2)
=
=$81,313.44
Cash Flow (Year-3)
= 
=$147,099.68
Net Present Value:
= -$209,306.07 + ($32,362.75/1.141)+ ($81,313.44/1.142) +($147,099.68/1.143)
= -$209,306.07 +$28,388.38 + $62,568.05 + $99,288.10
= -$19,062
Several of the readings highlight the differences between firms in realizing IT value. The biggest factors in creating these differences are growth prospects , earning history , location, concentration, staff and management, reputation etc.
Growth prospects - this factor looks at how much potential the business has to grow in the future.
Earning history - In earning history, income is a major factor in valuation of any business.
The importance of IT value is the first way to increase value is simply to increase the speed you deliver the kind of value people are willing to, offer better quality.
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