So, I don’t understand why the answer (page 190 CFAI Equity volume) of question 16 is B.
The reason I ask is because I thought we HAVE to forecast according to normalized earnings. Therefore my logic tells me that the best explanation for choosing a 5 year forecast is because the acquisition of a new product line would take time to accurately normalize its performance and integration into the market.
The answer for the question was B because ¨The electric scooter industry is new and growing and the contribution of Omikroon’s electric scooter division is forecast to expand over 10 years.¨
A bit confusing in my opinion