Solution-Anew software company believes revenue

Anew software company believes revenue

Reference no: EM13975993

Anew software company believes revenue must reach $5 million in Year 3 for the company to be viable. Everyyear, the expected operating margin (EBIT/Sales) is 20%, the tax rate is 30%, and asset turnover is 5X. Thefounders have $200,000 between them for initial equity funding.

With no other financing, will the $200,000 of founder investment be sufficient to achieve the Year 3 sales target? If not, what level of initial equity investment would be required?

Reference no: EM13975993

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Anew software company believes revenue

Reference no: EM13975993

Reference no: EM13975993

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