Projections

1. Which of the following seems the most likely projection for a relatively low profit-margin company that experiences significantly higher sales next year after which sales stabilize at the new level for a few years?
   
   a. Cash flow will improve significantly in each of the next few years.
   b. Cash flow will improve significantly next year and then stabilize at the improved level.
   c. Cash flow will decrease next year and then stabilize at that lower level.
   d. Cash flow will decrease next year and then improve to a higher-than-original level in subsequent years.
   

Score Assessment