Next net cash flow by using exponential smoothing approach

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Reference no: EM131334556

1. Suppose that your firm's last net cash flow equaled $40,000 and the last forecast for net cash flow is unknown. However, you know that the exponential smoothing forecast value was $75,000. Given an alpha of 0.3, what is the last period's forecasted value?

a. $57,500

b. $77,000

c. $99,000

d. $90,000

2. Suppose that your firm's last net cash flow equaled $50,000 and the last forecast for net cash flow was $65,000. Given an alpha of 0.4, what is the forecast for the next net cash flow by using an exponential smoothing approach?

a. $59,000

b. $67,000

c. $57,500

d. $56,000

Reference no: EM131334556

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