Suppose you determine that a firm's real sales in 2006 would be $10 million (in terms of 2004 dollars). What would the firm's nominal 2006 sales be assuming an annual inflation of 3% in both 2005 and 2006?

Group of answer choices

$10.609 million

$9.709 million

$9.426 million

Not possible to compute this without knowing CPIs in 2004 and 2006

$10.3 million