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How do you determine the projected revenue of a company in future periods. Please add example.

How do you determine the projected revenue of a company in future periods. Please add example.

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Answer #1

Projected Revenue means the estimated revenue which can be generated by making target sales. Mathematically it can be derived by multiplying the Projected Quantity with the Unit Sale Price.

For Example Tesla is making cars for its China Customers and is required to estimate the future revenue of its initiative. Below are the key factors which will determine the estimated revenue:-

  1. Target Customers
  2. Demand for the Tesla Cars
  3. Detailed Information about the Competitive cars in the market
  4. Economic Scenario for the industry
  5. Target Price
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