Calculating Annual Growth Rate
Not what you're looking for?
The following table shows annual sales data for Landrover, Inc., over the ten-year 1998-2008 period:
Year Sales
($ Millions)
1998 $4.0
1999 4.8
2000 5.6
2001 6.4
2002 7.0
2003 7.6
2004 8.4
2005 9.2
2006 10.2
2007 11.2
2008 12.4
A.Calculate the 1998-2008 growth rate in sales using the constant rate of change model with annual compounding.
B.Calculate 5-year and 10-year sales forecasts.
Purchase this Solution
Solution Summary
The solution describes the steps to calculate growth rate for the given data. It also gives 5-year and 10-year forecasts based upon calculated growth rate.
Solution Preview
A. Calculate the 1998-2008 growth rate in sales using the constant rate of change model with annual compounding.
Initial sales in 1998=So=$4.0 million
Sales in 2008=S=$12.4 million
Number of periods=n=10 years (1998 to 2008)
Constant growth ...
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
Recent Feedback
- "Thank you"
- "Really great step by step solution"
- "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
- "Thanks Again! This is totally a great service!"
- "Thank you so much for your help!"
Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.