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)

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?

Step by Step Solution

★★★★★

3.45 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Based on the model provided if the next months sales equal 192642 the forecasted Net Cash Flow would ... View full answer

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!

Urika Corp. manufactures a variety of kitchen and dining equipment from mixers and food processors to flatware, serving utensils, cooking utensils, and other items for consumer and commercial use....

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Bill and Fiona Russell have always enjoyed craft beer, and in recent years have started making small batches at home. As they experimented, they mastered several niche recipes including a key lime...

Discuss why you would or would not like to work in an organization like this?

The plant manager at Automaton Robotics is looking at the summarized incremental rate of return information shown below for five mutually exclusive alternatives, one of which must be chosen. The...

Douglas Corporation had 120,000 shares of stock outstanding on January 1, 2012. On May 1, 2012, Douglas issued 60,000 shares. On July 1, Douglas purchased 10,000 treasury shares, which were reissued...

In what sense can the historian be objective?

Assume that a company has recently switched to JIT manufacturing. Each manufacturing cell produces a single product or major subassembly. Cell workers have been trained to perform a variety of tasks....

Marwick Corporation issues 10%, 5 year bonds with a par value of $1,140,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%. What is the bond's issue...

Nathan is married with two children and has AGI of $405,000. He also has the following AMT adjustments and preferences: Itemized deductions: medical after floor:$5,375 regular tax taxes: $34,354...

In view of the increases in the price of gasoline, the government imposes a price ceiling on the sale of gasoline. Use the concepts of elasticity and efficiency covered in LSP240 to discuss, analyze...

The question "Which projects are most common/important in your work?" is an example of which topic from TIARA: Group of answer choices Assignments Insights Resources Advice

Noel's Mobile Pet Services Company has a grooming department staffed by 10 professional pet groomers. Each groomer is paid $30,000 per year and is able to process 6,000 grooming orders. Last year,...

To promote continuous growth and innovation among its employees, WINSERV wishes to enhance its learning and development policies.What is the MOST effective strategy for achieving this goal?...

Assignment: You are an Executive at the Canadian-based company Panamera Inc., a software company that sells and provides its services online (SaaS model). Your company's core product, initially...

The following contingency table is from the China Health and Nutrition Survey (2006)* Ever Smoked Cigarettes Household Registration Type: Urban Household Registration Type: Rural Total No Count: 2833...

Please answer ASAP! Use the above video link to answer the following questions. 1. The FASB requires the use of the retrospective adjustment method for changes in accounting principle because a. It...

CLASS PERIO Solving Linear Equations: Variable on Both Sides Solve each equation. 1) 6r+ 7 = 13 + 7r 3) -7x-3x+2=-8x-8 5)-14 +66+7-26=1+5b 7) n-3n = 14-4n 2) 13-4x=1-x 4)-8-x= x - 4x 6)n+2=-14-n 8)...

In the calculation of the standard deviation, what are the differences between each data value and the mean squared before they are summed? What would happen in every distribution of data if these...

The state tax division is evaluating the money raised by state sales taxes. Using data from all states, division members regress the amount of money raised by the sales tax per capita on the average...

The athletic director of a high school football conference is concerned about the incidence of injury. He suspects that playing on artificial turf is a likely source of injury, as well as the year of...

Rockville Enterprises manufactures woodworking equipment and is incorporated and based in Evansville, Indiana. Its real property is all in Indiana. Rockville employs a large sales force that travels...

Armstrong Incorporated, a Texas corporation, runs bicycle tours in several states. Armstrong also has a Texas retail store and an Internet store that ships to out-of-state customers. The bicycle...

Brad Carlton operates Carlton Collectibles, a rare coin shop in Washington, D.C., that ships coins to collectors in all 50 states. Carlton also provides appraisal service upon request. During the...