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Fred s Hardware and Hobby House expects its sales to increase at a constant rate of 8 percent per year over the next three years.
Freds Hardware and Hobby House expects its sales to increase at a constant rate of percent per year over the next three years. Current sales are $
a Forecast sales for each of the next three years.
b If sales in were $ and they grew to $ by a fouryear period what was the actual annual compound growth rate?
c What are some of the hazards of employing a constant rate of growth forecasting model?
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