Calculate west-star average daily cash flow

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The values in the table below refer to West-Star, Inc's last ten daily cash flows. Use this information to answer the questions below. (Show your work)

 

Day CF

 

1 -$15,000,000

 

2 -$5,000,000

 

3 $4,000,000

 

4 $20,000,000

 

5 $7,000,000

 

6 $9,000,000

 

7 $500,000

 

8 $1,000,000

 

9 $2,500,000

 

10  -$7,000,000

 

  1. Use Excel to calculate West-Star's average daily cash flow.
  2. Use Excel to calculate the standard deviation of West-Star's daily cash flow.
  3. Calculate West-Star's λ, assuming cash and equivalents of $1,000,000 and an unused line of credit of $1,500,000.
  4. What sum of cash and equivalents and unused credit line will allow West-Star to have a λ of 2.50?

Reference no: EM132393543

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