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please show work for answers Interest and MARR Interest is expected to be 10% per year unless stated otherwise Time 13 weeks in a quarter,

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Interest and MARR Interest is expected to be 10% per year unless stated otherwise Time 13 weeks in a quarter, 52 weeks in a year, 4 quarters in a year, 3 months per quarter Taxation Effective tax rate is 30% Figure 1: Music Streaming graphs Spotify Has Extended Its Lead In The Music Streaming Wars 175m 165m Spotify 150m Apple Music 125m mask Amazon Music Number of paid music subscribers 100m YouTube Music 75m 50m 25m 2018 2019 2020 2021 Om 2015 2016 2017 Sources: Company reports, various media reports, Midia estimates, FT chartr *Includes YouTube Premium You are the founder of a new music streaming app "The Scale". You are trying to scale The Scale and forecasts for costs and revenue are those shown in Figure 2 and Figure 3. Figure 2: Costs of The Scale Costs in SMI 12000 102 10000 20 TEP SER 10% 20 10 2013 30.00 0.00 Figure 3. Sales projected for The Scale (year Ois 2021) Sales [in SMI 1415.4 10 LO 1000 11 200 11. 815% 46261 120.000.000.000.00 0 Questions 1. If Spotify grows at only 4% per year after 2021 and you estimate that right now (year 0) they have an average charge of $10 per subscriber so they have $1650M in sales, twenty years from now, who has more revenue - Spotify or The Scale? 2. If Spotify's profit margin is 22% (so their profit is 22% of their revenue) then who has more profit 20 years from now? Spotify or The Scale? 3. What is the difference in profit between Spotify and The Scale (units in $M]? 4. What is the total cost for The Scale in PW based off Figure 2 (units in $M]? 5. What is the total sales for The Scale in PW based off Figure 3 [units in $M]

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