Tab 3: Compute Cash Flows with Faster Collections
2. Collect Faster
1
2
3
4
5
Units sold times price
1,281
1,708
2,135
Received In
Immediately 24%
307.44
409.92
512.4
One Month Later 28%
358.68
478.24
Two Months Later 48%
614.88
In (new this problem)
0
0
307.44
768.6
1605.52
Out (see original)*
2,349.05
2,859.35
3,174.35
3,489.35
4,067.35
2
3 Net Cash Flow (In minus Out)
-2,349.05
-2,859.35
-2,866.91
-2,720.75
-2,461.83
6
We can use the original values because collecting faster has no impact on what goes out of the firm.
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7