Calculations Review - NCF, PG, ROI

What's the formula for calculating Net Cash Flow?

• Sales - Expenses

• $ in - $ out

• Current NCF - Previous NCF

• Net Income / Cost of Investment

What's the formula for calculating Percentage Growth of Net Cash Flow?

• (Current NCF - |Prev. NCF|) X 100

• ((Prev. NCF - Current NCF)/|Prev. NCF|) X 100

• ((Current NCF - Prev. NCF)/|Prev. NCF|) X 100

• ((Current NCF - Prev. NCF)/|Current NCF|) X 100

What's the formula for calculating Return on Investment (ROI)?

• Investing Activities - Net Cash Flow

• Net Income / Cost of Investment

• Net Cash Flow / Cost of Investment

• Revenue / Cost of Investment

Calculate the Net Cash Flow for the period.

Sales Revenue = $28,000

Payroll Expense = $6,000

Initiated a Short Term Loan = $10,000

Had a leak and had to pay a plumber = $4,000

Purchased a new A/C Unit = $11,000

• $1,000

• $39,000

• -$3,000

• $17,000

Q3 had a Net Cash Flow of -$800. Q4 had an Net Cash Flow of $77,000.

What was the percentage growth in NCF from Q3 to Q4?

• 9,425%

• 9,525%

• 9,625%

• 9,725%

Investing in a new chatbot software that will help our customers will cost us $24,000. If it is effective, its very likely that we could see an increased profit of $40,000, because we wouldn't have to hire a person to perform that job duty any longer. We will, however, have to pay $500/month ($6,000 total for the year) for someone to troubleshoot and maintain the new chatbot software. What is the potential return on investment for the first year?

• 165%

• 142%

• 141%

• 167%