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Pharoah, Inc., reported sales of $2.2 million last year. The company's primary business is the manufacture of nuts and bolts. Since this is a mature
Pharoah, Inc., reported sales of $2.2 million last year. The company's primary business is the manufacture of nuts and bolts. Since this is a mature industry, analysts are confident that sales will grow at a steady rate of 6.5 percent per year. The company's net income equals 22 percent of sales. Management would like to buy a new fleet of trucks but can only do so once the net income reaches $628,000 a year. At the end of what year will pharaoh be able to buy the trucks?
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