Question
Dimitra is projecting cash flows for her firm using the percentage of sales method. She projects that the sales will be growing at 3% per
Dimitra is projecting cash flows for her firm using the percentage of sales method. She projects that the sales will be growing at 3% per year from the current level of $1M (year 0). She also projects a constant $30K per year in depreciation for the next 5 years. The firm's Net PPE currently stands at $400K. What should be her forecast for Capital Investment in year 3?
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Auditing and Accounting Cases Investigating Issues of Fraud and Professional Ethics
Authors: Jay Thibodeau, Deborah Freier
4th edition
78025567, 978-0078025563
