Question $(4)$

Directions: Click the Case Link above and use the information provided in Hearth and Home, Parts A and $B,$ to answer this question:

Hearth and Home management provides you with the following projections of net sales $($in $000$ s$)$ for the next three years: $20Y4-$$$3,750$;$20Y5-$$$4,250$;$20Y6-$$$4,650.$ How would you characterize the assumptions used in making these projections?

Conservative. Projected sales growth is below historical levels.

Reasonable. Projected sales growth is at or near historical levels.

Aggressive. Projected sales growth is significantly above historical levels.