$1.$ What is the computation of next year$$s earnings?

Multiple Choice

Current year sales $\backslash$times Expected Sales Growth $\backslash$times Expected Profit Margin

Prior year sales $\backslash$times Expected Sales Growth $\backslash$times Expected Profit Margin

Current year sales $\backslash$times $(1+$ Expected Sales Growth$)\backslash$times Expected Profit Margin

Prior year sales $\backslash$times $(1+$ Expected Sales Growth$)\backslash$times Expected Profit Margin

$2.$ If you have a negative net present value $($NPV$)$ and an internal rate of return $($IRR$)$ less than the company$$s cost of capital for a proposed investment, all other things equal, what do you do$?$

Multiple Choice

Invest

Do not invest

Can not be determined

$3.$ When a firm operates in a volatile industry and managers have proprietary information on how their marketing efforts are paying off, which sales forecast is likely going to be more informative for forecasting purposes?

Multiple Choice

Management forecasts

Analyst forecasts

Auditor forecasts

Forecasts from time series