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!