We hope to increase sales by 25% next year by investing in PP&E. We booked $1,500,000 in sales this year and our depreciation expense was $72,000. We ended this year with $875,000 of PP&E (net). How much should the firm plan for CAPEX assuming that our PP&E (net) and depreciation remain constant as a percentage of sales.
We hope to increase sales by 25% next year by investing in PP&E. We booked $1,500,000 in sales this year and our depreciation expense was $72,000. We ended this year with $875,000 of PP&E (net). How much should the firm plan for CAPEX assuming that our PP&E (net) and depreciation remain constant as a percentage of sales.
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...
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We hope to increase sales by 25% next year by investing in PP&E. We booked $1,500,000 in sales this year and our
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