CAGR Calculation - Example 2

Compound Annual Growth Rate
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				              CAGR Calculation - Example 2

			                Pankaj
If net profit for year 2000 is 200 million and for year 2004 is 400 million, then what will be the CAGR?
			            
			                  		Calculate CAGR Example 2
														
														John
(400/200)^(1/4) - 1 = (2)^(0,25) - 1 = 1,18 - 1 = 0,18
			                  	
			                  		CAGR Example 2
														
														Nagaraj.B.R
OK, I agree with John
			                  	
			                  		CAGR Example 2b
														
														Shafiqul Huq Shajal
If so the CAGR is 18% then what will be the expected sales for 2014. Is there any formula to forecast the future sales?
			                  	
			                  			Formula to Forecast Future Sales Based on CAGR (Example 2b)

															Roel Villanueva, Accountant, Philippines, Member
Using 2004 net profit of 400m as base, we can project the expected sales for 2014 as follows:

400 * (1+.189207)^10 = 2262.74m.
			                  		
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	                            Compound Annual Growth Rate
	                          
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	                                ForumCAGR Calculation - Example 1
CAGR Calculation - Example 2
Compound Annual Growth Rate: CAGR Formula
Basis of Compound Annual Growth Rate (CAGR)
How to Calculate CAGR if there is a Loss in the First Year?

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