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respective percentage values in 2022. Assume also that income tax will remain at 25% of the Pretax Income. expected to grow at a 10% yearly

respective percentage values in 2022.\ Assume also that income tax will remain at

25%

of the Pretax Income. expected to grow at a

10%

yearly rate for the next five years.\ The price of the product is

$2.2

in 2022 and is expected to remain at that price for the next years.\ \\\\table[[Market Analysis,

2022

,

2023

,

2024

,

2025
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PART L: Use the following information on Company Y and perform pro-forma financial modeling using a planned expansion method to answers the following questions. To do this assume that the percentage values with respect to sales of the 2023 (i) costs except depreciation, (ii) cash and equivalents, (iii) accounts receivable, (iv) inventories, and (v) accounts payable will remain fixed at their respective percentage values in 2022 . Assume also that income tax will remain at 25% of the Pretax Income. Company Y sells a product for which in 2022 the total market size was of 3,000,000 units, of which Company Y owned a share of 25%. Both, the total market size and Company Y s market share are expected to grow at a 10% yearly rate for the next five years. The price of the product is $2.2 in 2022 and is expected to remain at that price for the next vears. In 2022, the outstanding debt of Company Y is $1,500,000, for which the company makes yearly interest payments of 10%. The executives of Company Y are considering making a significant capital investment in 2023 of $3,000,000 to purchase new machinery. The company plans to finance this investment with a 30 -year loan that makes yearly interest payments equivalent to 9% of its principal. The principal is paid when the loan matures. The following table summarizes the debt and interest payment of Company Y

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