A company reported earnings (sales or net income) of ?2.1 million last year. The company?s primary business line is manufacturing of nuts and bolts. Since this is a mature industry, the analysts are certain that the sales will grow at a steady rate of 7 per cent a year for as far as they can tell. The company reports net income that represents 23 per cent of sales. The management would like to buy a new fleet of trucks but can only do so once the profit reaches ?620 000 a year. At the end of what year will they be able to buy the new fleet of trucks?
Paper#2503 | Written in 18-Jul-2015Price : $25