Dimitra is projecting cash flows for her firm using the percentage of sales method. She...
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Dimitra is projecting cash flows for her firm using the percentage of sales method. She projects that the sales will be growing at 4% per year from the current level of $1M (year 0). She also projects a constant $20K per year in depreciation for the next 5 years. The firm's Net PPE currently stands at $200K. What should be her forecast for Capital Investment in year 3?
A. $29K
B. $8K
C. $20K
D. $39K
E. $44K
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