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The sales data for the Lonestar Sports Apparel Company for the last 12 years as follows:

1996 $400,000 2002 $617,000
1997 $440,000 2003 $654,000
1998 $480,000 2004 $700,000
1999 $518,000 2005 $756,000
2000 $554,000 2006 $824,000
2001 $587,000 2007 $906,000

a. What are the 1996-2007 compound growth rates?
b. Using the result obtained in part a, what is your 2008 projection?
c. If you were to make your own projection, what would you forecast?

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The compound growth rate is examined.

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