
Pankaj

CAGR Calculation  Example 2
If net profit for year 2000 is 200 million and for year 2004 is 400 million, then what will be the CAGR?
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John


Calculate CAGR Example 2
(400/200)^(1/4)  1 = (2)^(0,25)  1 = 1,18  1 = 0,18



Nagaraj.B.R


CAGR Example 2
OK, I agree with John



Shafiqul Huq Shajal


CAGR Example 2b
If so the CAGR is 18% then what will be the expected sales for 2014. Is there any formula to forecast the future sales?



Roel Villanueva Accountant, Philippines


Formula to Forecast Future Sales Based on CAGR (Example 2b)
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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