Question
Suppose that your firm's last net cash flow equaled $50,000 and the last forecast for net cash flow was $65,000. Given an alpha of 0.4,
Suppose that your firm's last net cash flow equaled $50,000 and the last forecast for net cash flow was $65,000. Given an alpha of 0.4, what is the forecast for the next net cash flow by using an exponential smoothing approach?
| a. | $59,000 | |
| b. | $67,000 | |
| c. | $57,500 | |
| d. | $56,000 |
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
5th Edition
1260013987, 9781260013986
