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Company A's sales is $2000 and Net PPE (plant, property, and equipment) is $500 in the last fiscal year (year 0). The life of

Company A's sales is $2000 and Net PPE (plant, property, and equipment) is $500 in the last fiscal year (year 0). The life of fixed assets is 4 years (for both existing PPE and new additions). If the company plans to maintain a Net PPE/Sales ratio of 25% and the annual sales growth rate is 5%, what should be its Capex (capital expenditure) in year 5? Assume every fiscal year's Capex occurs at the end of the year, and the associated depreciation starts in the following fiscal year. All depreciation is straight line and all figures are in $m.

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