Your Finance Textbook Sold 53,250 Copies In Its First Year

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Your Finance Text Book Sold 53250 Copies In Its First Year The Publi Your finance text book sold 53,250 copies in its first year. The publishing company expects the sales to grow at a rate of 20 percent for the next three years, and by 10 percent in the fourth year. Calculate the total number of copies that the publisher expects to sell in year 3 and 4. Number of copies sold after 3 years: Number of copies sold in the fourth year:

Dr. Jack HW Helper · Accepted Answer

The initial sales of the finance textbook in its first year stand at 53,250 copies. To project the sales for subsequent years, we need to apply the expected growth rates for each year. Specifically, sales are anticipated to grow by 20 percent annually for the next three years, followed by a 10 percent increase in the fourth year. This requires calculating the sales at each step, considering compound growth, to determine the total expected sales for years three and four. Calculating sales after three years involves compound growth over three years at 20 percent each year. Starting with 53,250 copies: Year 1: 53,250 (initial sales) Year 2: 53,250 × (1 + 0.20) = 53,250 × 1.20 = 63,900 Year 3: 63,900 × 1.20 = 76,680 Thus, the expected number of copies sold in year 3 is 76,680 copies. Similarly, sales in year 4 increase by 10 percent from year 3's sales: Year 4: 76,680 × (1 + 0.10) = 76,680 × 1.10 = 84,348 Therefore, the expected copies sold in year 4 are 84,348. In summary, the publisher expects to sell approximately 76,680 copies in year 3 and 84,348 copies in year 4 based on the given growth rates. These calculations exemplify the application of compound growth formulas, key in financial forecasting, especially when projecting sales, revenues, or other metrics over multiple periods with varying growth rates. References Brealey, R., Myers, S., & Allen, F. (2020). Principles of Corporate Finance (13th ed.). McGraw-Hill Education. Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset (3rd ed.). Wiley Finance. Ross, S. A., Westerfield, R. W., & Jaffe, J. (2019). Corporate Finance (12th ed.). McGraw-Hill Education. Brigham, E. F., & Ehrhardt, M. C. (2016). Financial Management: Theory & Practice (15th ed.). Cengage Learning. Harrison, J. S., & Horngren, C. T. (2014). Financial & Managerial Accounting. Pearson. Multiple online sources related to sales forecasting, financial calculations, and compound

Your Finance Text Book Sold 53250 Copies In Its First Year The Publi

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