Birch Tree Service company had a record year in 2019, reporting revenues of $700,000 and a profit of 23%. The CEO feels sure the company’s success will continue. What is the lowest annual revenue growth rate, rounded to the nearest 1%, that would yield a total profit of at least $2,000,000 for the years 2019–2025?

Birch Tree Service company had a record year in 2019, reporting revenues of $700,000 and a profit of 23%. The CEO feels sure the company’s success will continue. What is the lowest annual revenue growth rate, rounded to the nearest 1%, that would yield a total profit of at least $2,000,000 for the years 2019–2025?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 7P

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48. The Birch Tree Service company had a record year in 2019, reporting revenues of $700,000 and a profit of 23%. The CEO feels sure the company's success will continue. What is the lowest annual revenue growth rate, rounded to the nearest 1%, that would yield a total profit of at least $2,000,000 for the years 2019-2025? OOOO 15% 18% 19% 20%
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