Chase reports gross property and equipment of $24 million in 2016 and $21 million in 2013. Sales revenue in 2016 was $187.5 million. 2016 capital expenditures were $3 million.
a. Project 2017 capital expenditures (CAPEX) for property and equipment assuming sales are forecasted to grow at 10%.
b. What will be the forecasted amount for property and equipment, gross, at the end of 2017?
c. What may be a more refined approach to projecting long-term assets?