| | | Acme International |
| | | Proforma Income Statements |
| | | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 |
| Sales revenue | | $ 580,000.00 | $ 609,000.00 | $ 639,400.00 | $ 671,000.00 | $ 745,500.00 | $ 782,000.00 |
| Less: Operating expenses | | $ 320,000.00 | $ 336,000.00 | $ 352,800.00 | $ 370,400.00 | $ 389,000.00 | $ 408,500.00 |
| Less: Depreciation expense | | $ 60,000.00 | $ 60,000.00 | $ 60,000.00 | $ 60,000.00 | $ 60,000.00 | $ 60,000.00 |
| Net income | | $ 200,000.00 | $ 213,000.00 | $ 226,600.00 | $ 240,600.00 | $ 296,500.00 | $ 313,500.00 |
| Initial cost of the investment: | | | $ 600,000.00 |
| Discount rate: | | | 10% |
dsiayck6
week_5_homework_help.xlsx
