# Exponential Model

Question

An alternative approach uses an exponential model with equation: N=11.0*1.06^T Where N is the number of households with internet connections (in millions) and T is the year. – Use the exponential model to estimate the number of households with internet connections in year 20 (calendar year 2022). Give your answer correct to the nearest hundred thousand. – Use the method shown in Unit 13, Subsection 5.2, to find the calendar year in which the exponential model predicts that the number of households with internet connections will reach 25 million.

– Write down the value of the scale factor for the exponential model. Use this to find the percentage increase in the number of households with internet connections each year.

Question

Cane Enterprises has never paid a dividend. Free cash flow is projected to be \$40,000 and \$50,000 for the next two years, and after the 2nd year it is expected to grow at a constant rate of 6 percent. The company’s WAAC is 11%.

Question

Find a quadratic   model for the given data. (Round your coefficients to three decimal   places.){(1, −1), (2, 1), (4, 8), (5, 14), (6, 25)}

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