... 1980, only 10% last year while the industry has grown at 28% per year. STC currently has the highest amount of assets (including fixed assets, A/R and inventory) in its history, probably because past sales projections were overly optimistic. With so much inventory, STC will incur higher carrying costs, and may end up selling products at steep discounts, or may not be able to sell product at all because they become obsolete. Although STC has won a new contract with the government, we would decrease sales growth to 15% for 1985, which is more in line with STC's historical performance of 12%, and is more realistic based on increased competition. We'd increase growth to 20% from 1987 to 1988 and 20% growth during the remaining years due to the introduction of the new product line in mid 1986. Cost of sales in the projections appears to be high at ...

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