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You're an investment banker engaged by Porcupine Tree Company regarding their efforts to complete the acquisition of Nightwish Metal, Inc. One of the things your

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You're an investment banker engaged by Porcupine Tree Company regarding their efforts to complete the acquisition of Nightwish Metal, Inc. One of the things your managing director has asked for is your evaluation of the financial performance of Nightwish Metal, Inc., as set out in an Offering Memorandum provided by the target's sell-side investment banker. Your analysis is going well until you see some interesting numbers. At issue is a measure of uncertainty in your mind regarding the Nightwish Metal, Inc. projections for the year 2020 , especially the revenue projection. Nightwish is a global concern based in Finland, and the foreign currencies in which it transacts its overseas business did strengthen against the dollar. However, your quick math suggests that doesn't explain much of the total jump in revenues. The financial history and near-term projections for Nightwish Metal, Inc. are as set out below. These projections were included in a pitch book you received from the target company's investment banker. Much to your surprise, the Offering Memorandum does not explain the sudden jump in revenues or any other figures for the projection of 2020. Notes: 1 . Ine combinea corporate jeaerai ana state income tax rate in UU is 8% 2. The Company's normal net working capital percentage is 10% of revenues Please respond to each of the following: 1. What is a possible explanation for the increase in 2020 projected performance, based on the data presented? 2. Please provide any analysis performed to support your explanation

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