Please help with the following problem.
Calculate the following:
Expected cash flows given forecasted profit
Present value and net present value
You will use this and previously developed information to formulate your final recommendation due next week.
Please see the attached file(s) for the complete tutorial. Thank you for the opportunity to be of assistance and of course, the opportunity to learn as well.
Expected Cash Flows, NPV, and Present Value
Expected cash flows
These are computed from the forecasted statement of income created for years 1 to 5. It is assumed that all expenses are paid when incurred and all revenues are collected when provided.
The UPS Store Franchise
Statement of Cash Flows
Year 0 1 2 3 4 5
Net income 2,119 1,432 1,326 1,208 1,080
Add: Depreciation ...
This solution helps calculate expected cash flows, NPV and present value. The answer is provided in an Excel spreadsheet.