Who is able to complete this assignment?
Lyft Company 6
Lyft Company
Name
Institution
Calculation of the net present value
|
Year |
Discounting factor 6% |
Cash flow |
Present value |
|
|
1 |
0.94 |
-119.638 |
-112.46 |
|
|
2 |
0.89 |
663.999 |
590.96 |
|
|
3 |
0.83 |
-472.433 |
-392.12 |
|
|
4 |
0.79 |
-142.021 |
-112.20 |
|
|
5 |
0.64 |
-125.98 |
-80.63 |
|
|
|
|
|
NPV=-118.47 |
|
The net present value of the project is a negative value and therefore it means that the company is undergoing losses and therefore the organization should restructure itself to ensure that their operations are productive (Henao, 2017).
A five-year financial forecast for the company
|
|
2016 |
2017 |
2018 |
2019 |
2020 |
Total |
|
Cash inflows |
|
|
|
|
|
|
|
Investment activities |
-407.853 |
-991.426 |
-1043.752 |
-1610.843 |
740.427 |
-3313.447 |
|
Operating activities |
-1378.899 |
-105.702 |
-280.673 |
-393.526 |
-487.163 |
-2645.963 |
|
Financial activities |
512.566 |
1574.196 |
852.238 |
2048.951 |
775.378 |
5763.329 |
|
Total inflows |
-1274.186 |
477.068 |
-472.187 |
44.582 |
1028.642 |
-196.081 |
|
Cash outflows |
|
|
|
|
|
|
|
Research and development expenses |
64.704 |
136.646 |
300.836 |
1505.64 |
909.126 |
2916.952 |
|
Selling and administration expense |
1362.458 |
2000.215 |
1251.609 |
788.461 |
594.306 |
5997.049 |
|
Other expenses |
-97.88 |
-183.513 |
-338.402 |
-636.116 |
-453.963 |
-1709.874 |
|
Operating expenses |
4173.063 |
6318.44 |
3134.327 |
1768.153 |
1035.901 |
16429.884 |
|
Total outflows |
5502.345 |
8271.788 |
4348.37 |
3426.136 |
2085.37 |
23634.011 |
|
Net cash flow |
-125.98 |
-142.021 |
-472.433 |
663.999 |
-119.638 |
-196.073 |
The data above shows how the Lyft Company is undergoing its business. It demonstrates the incomes that flows to the company and the expenditures during the normal operations of the company (Daryanto, 2019). This information is related to information in competency 1 since all are used to evaluate if the company is performing well and making profits. They are used to determine if the company’s going concern is questionable or not (Shokoohyar, 2020). According to the cash forecast above, the net cash flows of all the years have a negative value except that of the year 2019 where its incomes were more than the expenses. The negative values of the net cash flows implies that the company is bankrupt just as in the income statement where it net income was a loss (Sun, 2021). The company should therefore restructure its operations and engage in activities that will result to a profit (Hyun, 2021). Also, the company should employ those employees who are skilled and competent to ensure a quality production of goods and services. The company should therefore stop its operation until when it will get enough sources of finance to finance their daily operations.
References.
Daryanto, W. M., Dzikro, S. I., & Fitri, D. N. (2019). Financial Performance Analysis of Conventional Taxi in Indonesia: Before and After The Emergence of Ride-Hailing Company. South East Asia Journal of Contemporary Business, Economics and Law, 19(1), 13-21.
Hyun, K., Naz, F., Cronley, C., & Leat, S. (2021). User characteristics of shared-mobility: a comparative analysis of car-sharing and ride-hailing services. Transportation Planning and Technology, 1-12.
Henao, A. (2017). Impacts of Ridesourcing-Lyft and Uber-on Transportation Including VMT, Mode Replacement, Parking, and Travel Behavior. University of Colorado at Denver.
Shokoohyar, S., Sobhani, A., & Sobhani, A. (2020). Impacts of trip characteristics and weather condition on ride-sourcing network: Evidence from Uber and Lyft. Research in transportation economics, 80, 100820.
Sun, S., & Ertz, M. (2021). Dynamic evolution of ride-hailing platforms from a systemic perspective: Forecasting financial sustainability. Transportation Research Part C: Emerging Technologies, 125, 103003.
Net cash flow 2016 2017 2018 2019 2020 -125.98 -142.02099999999999 -472.43299999999999 663.99900000000002 -119.63800000000001 Column1 2016 2017 2018 2019 2020 Column2 2016 2017 2018 2019 2020
Lyft Company
1
Lyft Company
Name
Institution
Lyft Company 1
Lyft Company
Name
Institution