Hi! I have a question about Question 3 in this case (screenshot below). I am wondering why in Year 1, the 20% growth rate isn't accounted for? It seems it is assumed that this year-on-year growth doesn't begin until year 2, and I am wondering how you would know this -- when solving the case, I was unsure if I should do as you did, or multiply the value in year 1 by 1.2.
In general, I am unsure when growth rate should be accounted for in year 1 and when it shouldn't. I have seen numerous cases that similarly do not account for the growth percent until year 2, but I have also seen numerous cases account for the growth starting in year 1. Is there any convention here, or should I just ask the interviewer which I should do?
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