CAGR for Annual Sales Growth
One of the practice questions in Schweser volume two is asking will the annual revenue growth rate will be higher before or after translation, these are the three years and translation rate:
Revenue: 2014 2015 2016
765 820 870
Exchange Rates: 2014 2015 2016
1.4 1.3 1.45
The answer solves it out through CAGR of two years. My question is, why would the answer use CAGR ^ of two years not three years. And is CAGR the only way to solve out for revenue growth or we can use normal growth change=(new-old/old)
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