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%
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%
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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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
- 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
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