1. CVS Health Corporation reported sales of $177,526 million, property, plant and equipment (PPE), net of $10,175 million, and capital expenditures of $2,224 million in 2016.
If sales are projected to increase 4% per year over the next five years, what is the projected capital expenditures (purchases of new PPE) for 2017?
A. $7,951 million
B. $3,313 million
C. $2,224 million
D. $7,775 million
E. $2,400 million
2. In its 2017 annual report, Liberty Company reported sales of $1,200 million. If you anticipate that sales will grow by 4% each year for the foreseeable future, what will 2021 forecasted sales be?
A. $1,403.8 million
B. $1,248.0 million
C. $1,349.8 million
D. $1,179.7 million
E. None of the above