Answer :
Final answer:
To calculate the cash flow at t=4, all investment cash inflows and outflows, as well as cash inflows from financing activities, must be considered. However, the data provided does not correspond to any of the available answer options, suggesting there may be a mistake in the figures provided or additional missing information.So none of the option are correct
Explanation:
The student is asked to calculate cash flow for the last year (at t=4) for a company called Treehouse, excluding the CCA Tax Shield. To solve this, one typically adds up all the inflows and outflows of cash during the year in question.
Investment Cash Outflows: The company purchased investments for \$1,488,331, which is an outflow and consequently reduces the cash balance.
Investment Cash Inflows: The company sold investments, which increased cash by \$1,298,318.
Cash Inflows from Financing Activities: There was a cash inflow from financing activities amounting to \$62,412.
To find the cash flow at t=4, one would typically add the inflows and subtract the outflows:
Cash Flow at t=4 = Investment Sales Inflows + Cash Inflows from Financing Activities - Investment Purchase Outflows
Cash Flow at t=4 = (\$1,298,318 + \$62,412) - \$1,488,331
Cash Flow at t=4 = \$1,360,730 - \$1,488,331
Cash Flow at t=4 = -\$127,601
However, the provided information does not result in any of the answer choices given (a-d) so there may be a discrepancy in the data presented or an additional piece of information missing that is necessary to calculate the correct cash flow figure.
