Question

Ahmed owns a small motor repair shop that had a cash flow of $297,241 in the current period. If Ahmed expects his business to grow at a constant rate of 8%, what should his cash flow be next period?

Answer 1

Answer: $321,020

Step-by-step explanation:

The cash flow is expected to grow at a rate of 8%.

This means that in the next year it will be 8% higher than the $297,241 it is in the current period.

= 297,241 * ( 1 + rate)

= 297,241 * ( 1 + 8%)

= $321,020