2) A FIRM HAS THE FOLLOWING HISTORICAL, DAILY CASH FLOWS. THE FIRM HAS $15,000 IN CASH AND EQUIVALENTS BUT HAS NO ACCESS TO A BANK LINE OF CREDIT. Day Cash Flow Day Cash Flow Day Cash Flow 1 $26,554.20 11 $23,904.57 21 -$4,256.05 2 $23,110.38 12 -$64,951.28 22 $36,571.04 3 $8,227.22 13 $16,518.43 23 $85,506.95 4 $13,870.79 14 $5,393.37 24 $67,915.09 5 $86,705.92 15 $14,726.99 25 $10.52 6 $78,618.38 16 $5,660.26 26 $9,480.78 7 $63,396.45 17 $35,622.40 27 -$17,653.18 8 $124,891.46 18 $10,835.72 28 -$52,783.19 9 $53,915.35 19 -$24,064.02 29 $52,173.28 10 20 $35,184.53 -$12,941.02 30 $30,095.43 ACCESS THE EXCEL FILE IN THE LEARNING MANAGEMENT SYSTEM TO DO THE FOLLOWING ACTIVITIES: 1. Enter the historical daily cash flows in Excel. 2. Use the historical data to calculate expected future daily cash flow and historical cash flow volatility. 3. Calculate Lambda. 4. Using Lambda, calculate the probability of liquidity and illiquidity. 5. Interpret the result. 6. Recalculate Lambda and the resulting liquidity outcomes backing into a desired amount of a line of credit for a desired Lambda. 2) A FIRM HAS THE FOLLOWING HISTORICAL, DAILY CASH FLOWS. THE FIRM HAS $15,000 IN CASH AND EQUIVALENTS BUT HAS NO ACCESS TO A BANK LINE OF CREDIT. Day Cash Flow Day Cash Flow Day Cash Flow 1 $26,554.20 11 $23,904.57 21 -$4,256.05 2 $23,110.38 12 -$64,951.28 22 $36,571.04 3 $8,227.22 13 $16,518.43 23 $85,506.95 4 $13,870.79 14 $5,393.37 24 $67,915.09 5 $86,705.92 15 $14,726.99 25 $10.52 6 $78,618.38 16 $5,660.26 26 $9,480.78 7 $63,396.45 17 $35,622.40 27 -$17,653.18 8 $124,891.46 18 $10,835.72 28 -$52,783.19 9 $53,915.35 19 -$24,064.02 29 $52,173.28 10 20 $35,184.53 -$12,941.02 30 $30,095.43 ACCESS THE EXCEL FILE IN THE LEARNING MANAGEMENT SYSTEM TO DO THE FOLLOWING ACTIVITIES: 1. Enter the historical daily cash flows in Excel. 2. Use the historical data to calculate expected future daily cash flow and historical cash flow volatility. 3. Calculate Lambda. 4. Using Lambda, calculate the probability of liquidity and illiquidity. 5. Interpret the result. 6. Recalculate Lambda and the resulting liquidity outcomes backing into a desired amount of a line of credit for a desired Lambda
