1. Your company has developed the next great innovation in thermocouple technology. They are very excited, and the accounting department is predicting the first year's sales will be $25 million. You...

1. Your company has developed the next great innovation in thermocouple technology. They are very excited, and the accounting department is predicting the first year's sales will be $25 million. You anticipate sales will increase each year by 15%, and you use a planning horizon of 7 years.

a) If your company uses an 8% interest rate, what will the equivalent annual value of the sales be? b) What will the sales be in year 5?