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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 percentage of sales should you forecast? Explain.

2014 2015 2016 2017 2018 2019 2020
Sales 456,789 467,890 478,901 489,012 490,123 501,234 512,345
PP&E 67,890 68,901 69,012 70,123 71,234 72,345 73,456

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