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Assume that your company's last net cash flow equaled $53,000 and the last forecast for net cash flow was $65,000. Given an alpha of 0.7,
Assume that your company's last net cash flow equaled $53,000 and the last forecast for net cash flow was $65,000.
- Given an alpha of 0.7, forecast the next cash flow using the exponential smoothing approach.
- If your forecast for next month's cash flows is 87,500; the last forecasted cash flow was $75,000 and the last cash flow was $85,000, find alpha.
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