Calculate expenses for payroll and rent for years

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Question: Elena also needs to calculate expenses for payroll and rent for Years 2-5. She knows the starting amount for each expense, and estimates the rent in Year 5 will be $64,000. She expects the payroll expenses to increase by at least 6 percent per year and the rent to increase by a constant rate. Project the expenses for Payroll in Years 2-5 (cells C13:F13) using a Growth Trend extrapolation. Use 1.06 (a 6 percent increase) as the step value. Project the expenses for Rent in Years 2-4 (cells C14:E14) using a Growth Trend interpolation.

Reference no: EM133423950

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