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Ok. I am trying to put together a 5-year revenue projection. I only have the following data:

  • Units Sold in Year 1: 20
  • Units Sold in Year 2: 80
  • Units Sold in Year 3: 200

Now I need to use this data to figure out:

  1. What monthly growth rate to use for each month from Year 1 to Year 5 to project monthly unit sales?
  2. Similarly, growth rate to use for each quarter?
  3. The 5-year compound annual growth rate?
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    Are you going to assume that the growth rate is uniform throughout the five years, and that this uniform growth rate produced the given data?2011-05-16
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    Just assume uniform throughout five years. Doesn't need to exactly match the growth rates in the provided data, but be based somewhat on it, if that makes sense.2011-05-16
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    The annual growth from year 1 to year 2 is 300%, which would correspond to approximately 9.6% monthly growth. The annual growth from year 2 to year 3 is 150%, which corresponds to approximately 3.4% monthly growth. That's a pretty big difference, so that trying to approximate with a single growth rate is likely going to produce some horrible errors.2011-05-16

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