You estimate a model to explain net cash flow using sales as the independent variable. The model
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Question:
You estimate a model to explain net cash flow using sales as the independent variable. The model is:
Net Cash Flow = 13,000 + (0.8) Sales
If the next month's sales will equal $192642 what is the forecasted Net Cash Flow?
The firm can convert to ACH for disbursement, at a cost of $ 5384. The firm is expected to average a perpetual 5,000 payments per year. ACH disbursing will save the firm 20 cents per payment. The discount rate is 15%.
What is the minimum number of annual payments required to justify the cost to convert to ACH disbursing?
Related Book For
Applied Statistics For Public And Nonprofit Administration
ISBN: 9781285737232
9th Edition
Authors: Kenneth J. Meier, Jeffrey L. Brudney, John Bohte
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