Calculation of Market

Hey there, Marcela! Agree with you - it can't be 30%. Try to reach the author of the case for the explanations)

Hi Marcela,

I agree with you. I think it's a typo and is intended to be 3% :)

Hello!

I agree, but why dont you reach Xabi? He is in the platform :)

Cheers, 

Clara

Can you please explain why 3%? I am getting to 33% based on following logic

- we want to achieve 200k (assuming p.a. in year 3) with projected PM of 5%. This means that our revenues need to be 4M.

- market is growing 10% p.a. so (assuming that Y1 is current with 10M revs) in Y3 it will be 12,1M

4M out of 12,1M is approx 33% which we need to get in Y3 to have 200k in profits. 

Can you please explain what am I missing here? Thanks a lot!