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Calculate the projected net income in year 5 of the X corp that a forecast using...

Calculate the projected net income in year 5 of the X corp that a forecast using a percentage of sales model expects sales to increase by 15% annually over the next five years, and costs are proportional to sales at 60%. Last year's sales were $3,000.

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Ans $ 2413.63

YEAR SALES (15% GROWTH EACH YEAR) COST (60% OF SALES) PROFIT (SALES - COST)
0                                3,000.00                1,800.00             1,200.00
1                                3,450.00                2,070.00             1,380.00
2                                3,967.50                2,380.50             1,587.00
3                                4,562.63                2,737.58             1,825.05
4                                5,247.02                3,148.21             2,098.81
5                                6,034.07                3,620.44             2,413.63
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