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1. Sales revenue prediction The company is rapidly growing, and predicting future revenue is essential for planning that growth. The core financing of the
1. Sales revenue prediction The company is rapidly growing, and predicting future revenue is essential for planning that growth. The core financing of the company comes from two sources: a basic research and development (R&D) grant (which does not change from year to year) and revenue from shipping. Shipping revenue can vary, depending on the number of contracts and average revenue per contract (both of which are rising). Details of the different sources are contained in the table below. Funding Source R&D grant per year Number of contracts per year Current Value $600,000 500 Projections Projected to remain constant Projected to grow by 12% annually Average revenue per contract Instructions: $1,643.80 Projected to increase by 3% annually Your supervisor needs you to find a function that predicts the annual revenue from these sources and produce a well-labelled graph of revenue projections for the next 10 years, starting today. For planning purposes, your supervisor also wants you to calculate the projected annual revenue at the end of the 10-year period and to calculate the average rate of growth of the revenue over the 10-year period. Finally, the company will change its classification from SMB (small and medium-sized businesses) to SME (small and medium enterprises) when its revenues reach a certain amount. Hence, your supervisor wants you to calculate and mark on your graph the time (measured in years from now and correct to two decimal places) at which yearly revenues are projected to reach $3,000,000. Your solution: (About two pages)
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