Post Utme Ksu 2025 Commerce Question 13

A bank's cash management system involves the use of a cash forecasting model. The model is given by the formula: CF = (TR + ΔA - ΔC - ΔI) / (1 + r), where CF is the cash forecast, TR is the total revenue, ΔA is the change in accounts receivable, ΔC is the change in accounts payable, ΔI is the change in inventory, and r is the interest rate. If the total revenue is ₦10,000,000, the change in accounts receivable is ₦500,000, the change in accounts payable is ₦200,000, the change in inventory is ₦300,000, and the interest rate is 10%, what is the cash forecast?