Question: You are in the process of forecasting NCF using regression analysis (sales is the independent variable). After estimating the regression model, you have written out

You are in the process of forecasting NCF using regression analysis (sales is the independent variable). After estimating the regression model, you have written out the following equation: Forecasted NCF= $13,000 + (0.80*Sales). Using this model: a. Estimate a value for Forecasted NCF assuming that next month's Sales equal $200,000.

b. Assume that the month has passed and that the actual NCF was $180,000. Use this information to evaluate your forecast.

c. Determine the impact of an additional St in Sales on Forecasted Net Cash Flow.

d. What is Forecasted Net Cash Flow if there are no sales?

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