- 2 Exercise 5 2 Fred S Hardware And Hobby House Expects Its Sales To Increase At A Constant Rate Of 8 Percent Per Year O 1 (49.58 KiB) Viewed 14 times
2. Exercise 5.2 Fred's Hardware and Hobby House expects its sales to increase at a constant rate of 8 percent per year over the next three years. Current sales are $400,000. Complete the following table by forecasting sales for each of the next three years. Year 1 2 3 Forecasted Sales (Dollars) If sales in 2003 were $240,000 and they grew to $400,000 by 2007 (a four-year period), the actual annual compound growth rate was: O 18.56% 13.62% 10.76% Which of the following are some of the hazards of employing a constant rate of growth forecasting model? Check all that apply. It is ill-suited to estimate secular trends. It assumes that there are no cyclical variations. It ignores seasonal trends.