Birch Tree Service company had a record year in 2019, reporting revenues of $700,000 and a profit of 23%. The CEO feels sure the company’s success will continue. What is the lowest annual revenue growth rate, rounded to the nearest 1%, that would yield a total profit of at least $2,000,000 for the years 2019–2025?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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The Birch Tree Service company had a record year in 2019, reporting revenues of $700,000 and a profit of 23%. The CEO feels sure the company’s success will continue. What is the lowest annual revenue growth rate, rounded to the nearest 1%, that would yield a total profit of at least $2,000,000 for the years 2019–2025?

 

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