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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 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%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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 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%

Develop a five year financial forecast from 2016 showing profits before and after tax

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