Sales Trend Analysis
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1. Sales Trend Analysis. Scatter designs, produces and installs energy efficient window systems in commercial buildings. During the past 10 years, sales revenue has increased from 25 million to 65 million.
A. Calculate the company's growth rate in sales using the constant growth model with annual compounding.
B. Derive a 5-year and 10 year sales forecast
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Solution Summary
The expert examines a sales trend analysis. A company's growth rate in sales is determined.
Solution Preview
The equation for constant growth rate model with annual compounding is
Current value= initial value (1+G)^t
so we have:
$65,000,000 = ...
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