1. Use the following base-year data to prepare a subsequent five-year income statement forecast
   • Revenue: $1,200,000
   • Revenue growth rate: 30%
   • Cost of goods sold: 50%, remaining steady
   • Marketing expense: $600,000, growing at 75% of the revenue growth rate
   • SG&A expenses: $300,000, growing at 50% of the revenue growth rate
2. Zang Hao believes that if Iuiga can produce the financial results above, he should be able to sell the company for $5,000,000 at the end of year 5. If he desires to make 25% return on investment, what is the maximum amount of equity that he should invest in the company? Explain/justify your answer.