Your company just recorded sales of $$9$ million for the last fiscal year. You expect sales to grow in real terms at $7\%$ annual rate for the next three years. The inflation is expected to be $1\%$ per year during the same period. The appropriate nominal discount rate is $9\%.$

Assume that the first cash flow occurs exactly one year from today.

$($a$)$ What are your expected sales revenue for the next three years, in nominal terms?

Year $1$:

Year $2$:

Year $3$:

$($b$)$ What is the present value of your nominal sales revenue over the next three years?

$($c$)$ What are your expected sales revenue for the next three years, in real terms?

Year $1$:

Year $2$:

Year $3$:

$($d$)$ What is the present value of your real sales revenue over the next three years?