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You are building a model and trying the estimate the Capex of AppleBanana Co. You are forecasting growth of 7% per year in revenue. Given
You are building a model and trying the estimate the Capex of AppleBanana Co. You are forecasting growth of 7% per year in revenue. Given the information below, what is the Capex as a percentrage of sales should you forecast? Explain.
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |
Sales | 4,598 | 4,920 | 5,264 | 5,633 | 6,027 | 6,449 | 6,900 |
PP&E | 638 | 674 | 724 | 759 | 803 | 867 | 965 |
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