Question: 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]]
 Currently I am working on Cash Value Added (CVA) calculations and

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!