Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Currently I am working on Cash Value Added ( CVA ) calculations and am struggling on how to calculate the operating cash flow demand factor

Currently I am working on Cash Value Added (CVA) calculations and am struggling on how to calculate the operating cash flow demand factor (OCFD). we were given an example but there isn't any direction in calculating it.
the stratgic inestment in this case 100 Table 9.1 An illustration of CVA calculation
\table[[,1997,1998,1999,2000,2001,2002,2003,2004],[Sales,,160,170,250,185,200,215,200],[Less: Costs,-150,-150,-220,-160,-170,-180,-155,],[Operating surplus,10,15,30,25,30,35,45,],[Less: Working capital movement,0,-1,-6,5,-1,-1,1,],[Less: Non-strategic investments,-1,-3,-1,-3,-12,-4,-3,],[Operating cash flow,9,11,23,27,17,30,43,],[Less: Operating cash flow demand,17,18,18,19,19,20,20,],[Cash value added,-8,-6,5,8,-2,10,23,],[CVA index,,-8,-6,1.29,1.42,0.88,1.51,2.11],[Average discounted CVA index,-100,1.10,0.64,1.20,,,,],[Strategic investments,,,,,,,,],[Cash flow,-100,9,11,23,27,17,30,43]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Structured Finance Leveraged Buyouts Project Finance Asset Finance And Securitization

Authors: Charles-Henri Larreur

1st Edition

1119371104, 978-1119371106

More Books

Students also viewed these Finance questions

Question

Describe product liability and the tort upon which it is based.

Answered: 1 week ago

Question

What are your research interests?

Answered: 1 week ago