A major Internet company is thinking of purchasing another online retailer.

The retailer's current an

are $100 million, with expenses of $150 million. Current projections indicate that the retailer's revenu
@ 25% per year and its expenses are growing @5% per year. We know projections might be in error
we would like to know, for a variety of assumptions about annual revenue and expense growth, the n
before the retailer will show profit.

Current Growth Rate

Revenue 100 0.25
Expenses 150.00 0.05

Years 0 1 2 3 4 5
Revenues 100 125.00 156.25 195.31 244.14 305.18
Expenses 150 157.50 165.38 173.64 182.33 191.44
Breakeven -50 -32.5 -9.125 21.66875 61.8146875 113.733546875

Total

-9.125 0.02 0.03 0.04 0.05 0.06

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
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
tailer's current annual revenues Assumption: if
e retailer's revenues are growing the firm cannot
break even in 13
might be in error, however, and years, we say
nse growth, the number of years "Cannot Break
Even".

6 7 8 9 10 11 12
381.47 476.84 596.05 745.06 931.32 1164.15 1455.19
201.01 211.07 221.62 232.70 244.33 256.55 269.38
180.455380469 265.772094805 374.428131186 512.358827296 686.988380599 907.6023145519 1185.8130739334

Expense Growth
0.07 0.08 0.09 0.1 0.11 0.12 0.13
 13
1818.99
282.85
1536.1420321974

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. Maria storms into her Mazda
hour toward her mother's home in Los Angeles. Two hours after Maria left, Edmund jumps into his B
miles per hour. How many miles will each person have travelled when Edmund ca

Time Maria drives

Maria speed
Time Edmund drives
Edmund speed
Maria distance
Edmund distance
Difference
orms into her Mazda Miata and drives 64 miles per
und jumps into his BMW in hot pursuit, driving 80
d when Edmund catches Maria?
I would like to create best, worst, and most-likely scenarios for the sales of an automobile
sales, annual sales growth, and Year 1 sales prices.
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 5
Unit Sales
unit price
unit cost
Revenues
Costs
Before Tax Profits
Tax
Aftertax Profits

NPV
 an automobile by varying the values of Year 1
ales prices.