Respuesta :

If the company increases it's sales at an annual rate of 5%, than for the next 8 years the projection will be like this:
1. The first year the profit will be 390,600
2. The second year the profit will be 410,130
3. The third year the profit will be 430,636.5
4. The forth year the profit will be 452,168.33
5. The fifth year the profit will be 474,776.75
6. The sixth year the profit will be 498,515.59
7. The seventh year the profit will be 523,441.37
8. The eight year the profit will be 549,613.44
Even with just 5% annual increase, after eight years, the increase compared to the profit from year zero is almost 48%.

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