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A major Internet company is thinking of purchasing another online retaile

are $100 million, with expenses of $150 million. Current projections indica
@ 25% per year and its expenses are growing @5% per year. We know pr
we would like to know, for a variety of assumptions about annual revenue
before the retailer will show profi

Current Growth Rate


Revenue
Expenses

Years 0 1 2 3
Revenues
Expenses
Breakeven

Total

0.02 0.03 0.04


0.1
0.11
0.12
0.13
0.14
0.15
0.16
0.17
0.18
0.19
0.2
0.21
0.22
0.23
0.24
0.25
0.26
0.27
0.28
0.29
Revenue Growth 0.3
Revenue Growth
0.31
0.32
0.33
0.34
0.35
0.36
0.37
0.38
0.39
0.4
0.41
0.42
0.43
0.44
0.45
0.46
0.47
0.48
0.49
0.5
ther online retailer. The retailer's current annual revenues Assumption: if
projections indicate that the retailer's revenues are growing the firm cannot
break even in 13
year. We know projections might be in error, however, and years, we say
t annual revenue and expense growth, the number of years "Cannot Break
er will show profit. Even".

4 5 6 7 8

Expense Growth
0.05 0.06 0.07 0.08 0.09
9 10 11 12 13

Expense Growth
0.1 0.11 0.12 0.13 0.14
0.15 0.16 0.17 0.18 0.19 0.2
Mari abd Edmund have alover's quarrel while honeymooning in Seattle. M
hour toward her mother's home in Los Angeles. Two hours after Maria le
miles per hour. How many miles will each person have

Time Maria drives


Maria speed
Time Edmund drives
Edmund speed
Maria distance
Edmund distance
Difference
ymooning in Seattle. Maria storms into her Mazda Miata and drives 64 miles per
wo hours after Maria left, Edmund jumps into his BMW in hot pursuit, driving 80
will each person have travelled when Edmund catches Maria?
I would like to create best, worst, and most-likely scenarios for the
sales, annual sales growth, and

taxrate 0.4
Year1sales 12000
Sales growth 0.05
Year1price $ 7.50
Year1cost $ 6.00
intrate 0.15
costgrowth 0.05
pricegrowth 0.03

Year 1 2 3 4
Unit Sales
unit price
unit cost
Revenues
Costs
Before Tax Profits
Tax
Aftertax Profits

NPV
scenarios for the sales of an automobile by varying the values of Year 1
les growth, and Year 1 sales prices.

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