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Bookmarks People Window Help ×(@sintroduction To The Presemx' ?Aplia: Student Question ttps://courses.aplia.com/atjservlet/quiz?quiz.action-takeQuiz&quiz; probGuid-QNAPCOA8010100000041ca25e00boo Time Value of Money Graded Assignment | Read Chapter 5 | Back to Assignment Due Sunday 06.17.18 at 11:45 Ph Attempts: Keep the Highest: 8. Companies and growth rates AaAa? Future value and present value concepts are share, expected sales and revenues in the future, and so forth. applied in various ways, such as calculating growth rates, earnings per Consider the following case: Germany was a growing market for Coca-Cola, along with other countries in Europe, before World War II. With the previous data given, calculate the company's sales growth rate for each time perlod in the following table: Pharmacist John S. Pemberton Invented a soft drink in 1886 that eventually became not only an integral part of everyday life in the United States but also a symbol of consumerism worldwide. In 1929 the first Coca-Cola vending machines were installed in Germany, and in 1930, the German branch of the Coca-Cola Co. opened in Essen. Coca-Cola sales in Germany were 243,000 cases in 1934, 1 million cases in 1936, and 4.5 milion cases in 1939. Growth Rate Years 1934-1936 1936-1939 1934-1939 GmbHl and World War Two,"www.gettherealfacts.co.uk/docs/gmbh.pdr) During World War I1, Coca-Cola 1945. If Coca-Cola's sales had grown from 1939 to 1945 at the same rate that its sales in 1945 would have been approximately present value.) Co. cut off all syrup sales to Germany in 1940, resulting in no sales from 1943 to they grew between 1934 and 1939. cases. (Hint: Use sales data from 1939 as the

Explanation / Answer

Growth Rates

For calculating the growth rates, we would use the compounding function FV = PV * (1 + r)n

For 1934-1936: 1000000 = 243000 * (1 + r)2 ; r = 102.86%

For 1936-1939: 4500000 = 1000000 * (1 + r)3 ; r = 65.10%

For 1934-1939: 4500000 = 243000 * (1 + r)5 ; r = 79.28%

QUESTION 2

r = 79.28%, PV = 4,500,000, n = 6. We need to calculate FV.

FV = 4,500,000 * (1 + 79.28%)6 = 149,396,355.13 Hence. Answer is $149.4 mil

QUESTIOn 3

FV = 26.7 bil * (1 + 10.26%)42

FV = 1,614.61 bil

Assuming the ratio/shjare of great britain in global sales would remain same = 12% * 1,614.61 = 193.75 cases (in 2053) --> Answer

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