#128Revenue Forecast Compounds Off the Base Year Every Time
forecasting.easyFORECASTING
1A1: Base Year Revenue 1,250.0
2A2: Annual Growth Rate 14.0%
3A3: Year 1 Revenue =A1*(1+A2)
4A4: Year 2 Revenue =A1*(1+A2)
5A5: Year 3 Revenue =A1*(1+A2)
6A6: 3-Year CAGR =(A5/A1)^(1/3)-1
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#128PracticeEasy10 min · 50 XP
Revenue Forecast Compounds Off the Base Year Every Time
A five-year revenue build shows healthy growth in year one and then a flat line, even though the growth assumption is applied to every year.
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