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- Future value: 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?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 $Hotel Today Ltd. is thinking of buying a real estate asset. The asset's projected stabilized NOI for the following year is $ 5,400,000 and it is currently selling for $ 65 million based on the market cap rate perception. Hotel Today Ltd. has a required return of 9% on this investment. Based on market forecasts, they have estimated a 1.5% growth per annum. Based on their internal cap rate perception, is it a good buy and why?
- 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.…1. Your company has developed the next great innovation in thermocouple technology. They are very excited, and the accounting department is predicting the first year's sales will be $25 million. You anticipate sales will increase each year by 15%, and you use a planning horizon of 7 years. a) If your company uses an 8% interest rate, what will the equivalent annual value of the sales be? b) What will the sales be in year 5?Petry Corp. is a growing company with sales of $1.25 million this year. The firm expects to grow at an annual rate of 25 percent for the next three years, followed by a growth of 20 percent per year for the next two years. What will be Petry’s sales at the end of five years?
- A business industry has a new product whose sales are expected to be 1.2, 3.5, 7, 5, 3 million units per year over the next 5 years. Production, distribution, and overhead costs are stable at $120 per unit. The price will be $200 per unit for the first two years, and then $180, $160 and $140 for the next three years. The remaining R&D and production costs are $300 million. If the interest rate is 15%, determine whether this business will profit using present worth method. What is the future worth? *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?A company is considering an investment expected to yield $70,000 after six years. If this company demands an 8% return, how much is it willing to pay for this investment today?
- SERVICIOS EDUCATIVOS IMPRESOS S.A. wants to do a scenario analysis for the coming year (2022). The pessimistic prediction for sales is $900,000; the most likely amount of sales is $1,125,000; and the optimistic prediction is $1,280,000. The company's income statement for the most recent year is the following: SERVICIOS EDUCATIVOS IMPRESOS S.A. - Income Statement for the year ended December 2021 0 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate = 25%) Net profits after taxes $937,500 421,875 $515,625 234,375 $281,250 30,000 $251,250 62,813 $188,437 Use the percent-of-sales method, the income statement for December 31, 2021 and the sales revenue estimates to develop pessimistic • most likely • optimistic pro forma income statements for the coming year.If a company expects to increase sales by $7,000 per year over a 10-year planning horizon, what will be the cash flows at the end of every year?Assume that next year, management wants the company to earn a minimum profit of $ 500,000. How many units will have to sold to meet this target profit figure?