What is the mathematical formula that businesses use to estimate their return when starting a business?

I keep seeing how new companies are develop and that there is an estimate on their annual return, net profit etc.

Can you provide a link or an example how they calculate using the mathematical formula that they use?

Answer:
There is no mathematical formula to estimate the return on a new business. Most new ventures create a business plan, which forecasts revenues, expenses, and cash flow, and from these forecasts an expected return on investment can be calculated.
This link should assist you further:

http://www.entrepreneur.com/businessplan. -- Starting Costs Estimator

Hope that helps!

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