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 2024 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%a)    Develop a five year financial forecast  showing profits before and after tax.  b)    Determine If the Loan should be given based on the forecast

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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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 2024 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%
a)    Develop a five year financial forecast  showing profits before and after tax.  
b)    Determine If the Loan should be given based on the forecast

 

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