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Math Help - Growth rate

  1. #1
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    Question Growth rate

    A company projects that it receives no profit (zero) in a period. However, it receives the profit in the amount of 300 currency units.

    What is the difference between the actual result and plan in percentage? Say, if it projects a profit of 200 and the actual profit is 300, we get (300-200)/200=50% , the actual result is 50% better than the plan.
    But what is the percentage result if the beginning value is zero?

    Helpe me please! Some say this has no solution. I don't believe it's that bad!
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  2. #2
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    plan is 0 profit and actual profit is 'a' where a>0, so by your calclation projected profit is \frac{a-0}{0} = \frac{a}{0}.

    This has a zero divisor and cannot be defined.
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  3. #3
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    So, there is no solution to this problem and this company's performance cannot be expressed in percent in this case?
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  4. #4
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    There is no way of finding a percentage increase where the baseline number is zero.
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  5. #5
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    Thank you!
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