If function

[Frank Living]

Can anybody please help me with this ??

A company will be selling 10.000 units during 2004, Two competitors will enter the market, our company will loose 30% in when the 1st company enters ad 15 when the second company does. The market is growing by 10% each year. So I basically wrote a formula which will compute sales for 2004 - 2013. However the formula only works when I add 1+ in the beginning and 1- at the end. I wanted to know why.


=(1+annual_growth)*IF(C7=_1st_comp_entry,(1-_1st_comp_drop)*D6,IF(C7=_2nd_comp_entry,D6*(1-_2nd_comp_drop),D6))

 

[baodinh]

Assuming you entered the growth rate of 10% as 0.1 then it is simple maths that you need to add 1 to the growth rate to multiply otherwise you would be multiplying by 10% (reduction to one tenth) instead of increase by 10%. You have a formula that works. Enjoy it!

 

[AlphaFrog]

If you want to increase a value by say 10%, you would multiply it by 110% or 1.1 or (1+10%)

If you want to decrease a value by 10%, you could multiply it by 90% (.9) or multiply it by (1-10%) which is the same as 90%

 

[Frank Living]

Thanks guys!