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. | $67,000 | |
| b. | $57,500 | |
| c. | $59,000 | |
| d. | $56,000 |
1 points
QUESTION 9
Suppose that your firm's last net cash flow equaled $40,000 and the last forecast for net cash flow is unknown. However, you know that the exponential smoothing forecast value was $75,000. Given an alpha of 0.3, what is the last period's forecasted value?
| a. | $77,000 | |
| b. | $99,000 | |
| c. | $57,500 | |
| d. | $90,000 |
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Multinational Financial Management
Authors: Shapiro A.C.
9th International Edition
8126536934, 9788126536931
