Which of the following is NOT relevant to the evaluation of a proposed project? Incremental cash flows O Sunk costs associated with adoption of a project Any tax effects Assets which the firm finances O Each of the listed items is relevant to the evaluation of a project.

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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.