Accounting and Finance will send you fquestions file Essay

Accounting and Finance will send you fquestions file - Essay Example Therefore, the IRR calculated through Trial & Error method is 29.165% approximately at which the present value of estimated cash flows is  £99,996 which is approximately equal to initial investment i.e.  £100,000 The customer should take the project because the payback period is two years and eight months, besides, the IRR calculated through Trial & Error method is 29.165% approximately at which the present value of estimated cash flows is  £99,996 that gives an approximately equal to initial investment i.e.  £100,000. The ending cash balance during month of August is  £37,240 while the expected cash balance during September is  £43,390. Similarly the expected cash balance during October and November are  £48,930 and  £55,150 respectively as shown in the table above. Organisations need budget to help in the evaluation of its performance. Without a financial planning that makes use of the budget, they would not be in a position to assess their progress and institute appropriate measures. Besides, they need budgeting for efficient coordination of the organisational activities. The budget acts like a blueprint that provides the roadmap and the expectation of the activities like sales, expenditures, and other costs. When organisations do not use budgets to address these issues, they are at risk of running down the organisation because of unplanned activities that are likely to exceed the expectations. Budgeting helps organisations to take control of their finances, hence keeping focused on the goals they laid down when beginning the financial year. A budget helps the organisation plan savings and makes decisions in advance when expecting or not expecting any costs related to the activity of the organisation hence controlling debts (Young, 2003). Budgeting process can be very challenging especially when there is poor communication between the team tasked with the making of decisions. Therefore, enhancing communication and reducing the number of people