Growth Trend

B

Big Wave

I am working on the following problem and i am stuck. In the income
statement workseet, project the revenue in years 2 through 4 by interpolating
the increase in revenue between Year 1(3,500,000) and Year 5 (5,200,000),
assuming a growth trend. The resulting five-years revenue projection should
fill the range B7:F7
 
J

joeu2004

Big Wave said:
project the revenue in years 2 through 4 by interpolating the
increase in revenue between Year 1(3,500,000) and Year 5
(5,200,000), assuming a growth trend. The resulting
five-years revenue projection should fill the range B7:F7
Click to expand...

I think you are saying that you want to compute the annual compound growth
rate, then use it to estimate the intermediate years. If B7 is 3,500,000 and
F7 is 5,200,000, then put the following into C7 and copy across through E7:

=B7*(1+rate(4,0,-$B$7,$F$7))

HTH.
 
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