Calculate the year to year annual sales growth rates

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Gross profit margins are expected to average about 30 percent each year. Because of relatively high marketing expenditures aimed at gaining market share, the firm is expected to suffer net losses for two years. marketing and other operating expenses are estimated to be $3 million in 2006 and $5 million in 2007. howerver, during the third year operating cash flow breakeven should be reached Net profit margins are expected to average 10 percent per year beginning in year 3.The asset inensity or turnover is expected to average about two times per year.
Learningbeeam estimates that venture investors should earn about a 40 percent average annual compound rate of return.

The total market for children's entertainment is estimated to be $35 billion annually.

Toys account for about $20 billion in annual spending. Summer camps are estimate to generate $6 billion annually. This is followed by kids videos and video games at $4 billion each. kids'software sales currently generate about $1 billion per year in revenues and industry sales are expected to grow at a 30 percent annual reate over the next several years.

Learningbeam has made the foolwing five-year revenue projections:

2006 2007 2008 2009 2010
$1.0 $9.6 $30.1 $67.8 121.4

Revenues($M)

How do I calculate the year to year annual sales growth rates for Learningbeam and how do I estimate the compound growth rate over the 2006 and 2010 time period?. How do estimate learnighbeam's expected market share in each year based on the given data? and how do I estimate Net income loss in each of the five years? and estimate the firm's return on assets beinning when the net or after-tax income is expected to be positive.

Reference no: EM1345596

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