QUESTION

Excel Assignment 8 AYK13_Data_Version 5.xlsx (14.

•   Excel Assignment 8 AYK13_Data_Version 5.xlsx(14.946 KB)

In this assignment, you are determining the number of years required to break even using the  both the annual revenue growth rate and the annual expense growth rate.

Using your revenue and your expense dollar amounts provided in the Excel assignment, perform the following steps:

Calculate your revenue growth per year

Calculate your expense growth per year

Subtract your expense growth per year from your revenue growth per year

This gives a net income growth in revenue per year

Using your revenue and your expense dollar amounts, perform the following calculation:

Divide the difference by the net income growth in revenue per year

This gives you your number of years to pay back your initial investment of  \$300,000,000.

Once you have calculated the number of years to pay back your investment, calculate the total expected revenue and the total expected expenses; which should be equal

Total Expected Revenue is calculated as follows:

Multiply number of years by the revenue growth = A

Multiply results  (A) by original total revenue value = B

Add results (B) to original total revenue value = total expected revenue

Total Expected Expenses is calculated as follows:

Multiply number of years by the expense growth = X

Multiply results  (X) by original total expense value = Y

Add results (Y) to original total expense value = total expected expense

REMEMBER TO SHOW YOUR FORMULA FOR EACH CALCULATION.