APPENDIX 2.3 NEW TECH (E): KEY ASSUMPTIONS
This is a list of the most important quantitative assumptions that New
Tech used to develop its financial projections.
New Tech Distributors Corp. Key Assumptions (Base Case)
2000 Actual 2001 Forecast 2002 Forecast
Sales revenue $3,000,000
Annual sales growth 15.0% 30.0% 20.5%
Sustainable growth
(beyond 2002)
15.0%
General and administrative
expenses
$445,000 $490,000 $555,000
Research and development
expenses
$50,000 $100,000 $100,000
Depreciation and
amortization
$200,000 $325,000 $375,000
Income tax rate 35.0% 35.0% 35.0%
Fixed assets addition $200,000 $1,100,000 $740,000
Interest rates
Working capital loan 7.0% 7.0% 7.0%
Excess cash and marketable
securities
4.0% 4.0% 4.0%
Term loan 10.0% 10.0% 10.0%
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Alternatives in Venture Financing—Debt Capital 83
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