Assume That the Current Date Is February 1,2003

question 47

Multiple Choice

Assume that the current date is February 1,2003.The linear regression model was applied to a monthly time series data based on the last 24 months' sales.(from January 2000 through December 2002) .The following partial computer output summarizes the results. Determine the predicted sales for this month.

• A)45.9
• B)42.7
• C)44.3
• D)109.1
• E)113.4

---

Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, commonly used to appraise long-term projects.

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis. It reflects the opportunity cost of capital.

Present Value

The value at present of future cash receipts or a lump sum, taking into consideration a specified rate of return.

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today, taking into account interest or return on investment.