I have attempted to solve this last problem for an hour now and can't seem to find the right formula. Can anyone help? I have attached the given information in excel format and the problem reads the following:
Xmark.com is a major internet company specializing in organic food. Xmark.com is thinking of purchasing GoodGrow, another organic food internet company. GoodGrow has current revenues of $100 million,with expenses of $150 million. Current projections indicate that Good Grow's revenues are increasing at 35 percent per year and its expenses are increasing by 10 percent per year. XMark.com understands that projections can be erroneous, however; the company must determine the number of years before GoodGrow will return a profit.
Project Focus
You need to help Xmark.com determine the number of years required to break even, using annual growth rates in revenue between 20 percent and 60 percent and annual expense growth rate between 10 and 30 percent.
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