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What Is This Month's Forecast Using Exponential Smoothing with Alpha

question 144

Multiple Choice

What is this month's forecast using exponential smoothing with alpha = .2, if August's forecast was 145?


Definitions:

Cost of Capital

The return rate that a company must earn on its investment projects to maintain its market value and attract funds.

Net Present Value

A calculation used to determine the present value of a series of future cash flows minus the initial investment, often used in capital budgeting.

Return on Investment

A financial metric used to evaluate the efficiency of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Present Value of An Annuity

The current worth of a series of future payments or receipts, discounted at a specific interest rate.

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