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    Calculating Expected Cash Flows, NPV, and Present Value

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    Please help with the following problem.

    Calculating Expected Cash Flows, NPV, and Present Value for The UPS Store Franchise Opportunity

    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.

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    Solution Preview

    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.
    Anna, 108710

    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 ...

    Solution Summary

    This solution helps calculate expected cash flows, NPV and present value. The answer is provided in an Excel spreadsheet.