Company Analysis: Forecasting sample question
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CFA Level I sample question
CFA Level I Company Analysis: Forecasting question
Equity Investments
Company Analysis: Forecasting
An analyst forecasts a company's capital expenditures in two parts. Maintenance capital expenditure is estimated as current-year depreciation of USD 50 million adjusted upward for 4% equipment cost inflation. Growth capital expenditure is estimated as 15% of the forecast increase in revenue. Revenue is forecast to rise from USD 1,000 million to USD 1,140 million. Total forecast capital expenditure is closest to:
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