Parisian Win dow Ltd. is a new business that has just booked €140,000 in sales in its first year of trading. The managers expect that they will achieve 25 percent sales growth per year. What will their expected sales in Years 2, 3, and 4 be

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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a) Parisian Win dow Ltd. is a new business that has just booked €140,000 in sales in its first year of trading. The managers expect that they will achieve 25 percent sales growth per year. What will their expected sales in Years 2, 3, and 4 be? b) You have just introduced "must-have" headphones for the iPod. Sales of the new product are expected to be 10,000 units this year and to increase by 15 percent per year in the future. What are expected sales during each of the next three years? Graph this sales trend, and explain why the number of additional units sold increases every year. USE EXCEL TO WORK THIS OUT AND SHOW THE FORMULA!
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