CelebNav, Inc. had sales last year of $750,000 and the analysts are predicting a good year for the start up, with sales growing 21 percent a year for the next 3 years. After that, the sales should grow 12 percent per year for another two years, at which time the owners are planning on selling the company. What are the projected sales for the last year before the sale? (Round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.) Projected sales in year 5 $

CelebNav, Inc. had sales last year of $750,000 and the analysts are predicting a good year for the start up, with sales growing 21 percent a year for the next 3 years. After that, the sales should grow 12 percent per year for another two years, at which time the owners are planning on selling the company. What are the projected sales for the last year before the sale? (Round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.) Projected sales in year 5 $

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 22P

See similar textbooks

Similar questions

CelebNav, Inc., had sales last year of $700,000, and the analysts are predicting strong future performance for the start-up, with sales growing 20 percent a year for the next three years. After that, the sales should grow 11 percent per year for two years, at which time the owners are planning to sell the company. What are the projected sales for the last year before the sale?
An office building is currently for sale, and you are thinking of purchasing it. From your extensive market research and knowledge, you know the net operating income for this year is $315,000. You expect the net operating income will grow by 7% in the first five years, 5% in the subsequent five years, and 3.5% for every year after. If you are considering an 18-year investment window and desire a 16% rate of return, how much should you pay for the building?
Suppose you own a business and you expect to generate a profit of $50,000 next year. Each year after that you expect your profit to grow by 4%. If you earn profits for 10 years total and the discount rate is 8%, what is your company’s valuation today (present value)? (Show layout in Excel Please)
Best Properties is considering an investment that will pay $1,000.00 at the end of each year for the next 15 years. It expects to earn an annual return of 16% on its investment. How much should the company pay today for its investment? Type your numeric answer and submit
Your start-up company's net profit next year will be $50,000, and you then expect that to increase by $5,000 for each of the following 4 years. You now are asking the bank for a $25,000 loan to buy some new equipment, and the loan officer asks you for the current equivalent annual worth of your net profit over your projection period -- WITHOUT the new equipment. Your interest rate is 3% per year. What is the amount of that equivalent annual worth? $61,714 $57,316 $84,754 $59,705 $82,316
A company is considering buying a CNC machine. In today's dollars, it is estimated that the maintenance costs for the machine (paid at the end of each year) will be $29,000, $31,000, $32,000, $33,000, and $35,000 for years 1 to 5, respectively. The general inflation rate (F) is estimated to be 6% per year, and the company will receive 14% return (interest) per year on its invested funds during the inflationary period. The company wants to pay for maintenance expenses in equivalent equal payments (in actual dollars) at the end of each of the five years. Find the amount of the company's payments. C The amount of the company's payments is $ thousand. (Round to the nearest thousand.)
The demand for a product during the next ten years will be such that revenues will be $100,000 the first year and will increase by $10,000 each year thereafter. If inflation is assumed to be 6% per yuear and the company uses 10% in its economic studies, what is the present worth of the revenues expressed in present dollars?
Company Z showed a profit of $1.5 billion last year. The CEO of the company expects the profit to increase by 0.25 billion dollars per year over the next seven years and the profits will be continuously invested in an account bearing a 6.1% APR compounded continuously. What is the seven-year present value? The units of your answer should be billion dollars. Input your answer to three decimal places. 4.919
MEINE ON The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.20% of the market share in 2019 and expects that percentage will increase by 0.27% per year. KMS currently has the capacity to produce a maximum of 1,100,000 units. What production capacity will KMS require each year? When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? Year Production Volume (000 units) Market Size KMS's market share for 2019 is KMS's market share for 2021 is KMS's market share for 2022 is 2019 KMS's market share for 2023 is 10,412 11,570 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. KMS's market share for 2024 is 2020 10,000 units.…
You are getting into a business and want to take a loan. The bank requires that you show them your projected profits. Develop calculate a forecast for the next five years starting 2022 the following data: First order is for 100,000 units at a selling price of 6kshs per unit. Both numbers are projected to increase by 20% yearly Renting the production facility at 500,000kshs a year for five years Variable manufacturing cost of 1.50kshs per unit with a projected increase of 10% yearly Administration cost of 25,000kshs per year with a likely increase of 5%annually Tax rate is at 36% Develop a five year financial forecast from 2016 showing profits before and after tax
(Use Calculator or Formula Approach) Suppose your company expects to increase unit sales of widgets by 15% per year for the next 5 years. If you concurrently sell 3 million widgets in one year, how many widgets do you expect to sell in 5 years?
A company is considering buying a CNCmachine. In today’s dollars, it is estimated that themaintenance costs for the machine (paid at the endof each year) will be $25,000, $26,000, $28,000,$30,000, and $32,000 for years 1 to 5, respectively.The general inflation rate ( f ) is estimated to be5% per year, and the company will receive 13%return (interest) per year on its invested funds during the inflationary period. The company wants topay for maintenance expenses in equivalent equalpayments (in actual dollars) at the end of each ofthe five years. Find the amount of the company’spayments