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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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