In question three, I am confused as to whether the $40 M is annual or a once of payment? In the writing in the questions it is said that it is annual - 'Paying close to £46 million per year seems like a hefty investment', but in the calculation it seems to be once off - 'Total revenues – total costs = £196.6m - £40m - £18m = £138.6m '.
Which one is it?
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Question 3 Calculations
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Cristian
am 22. Feb. 2025
Coach
Top MBB Coach | Most Awarded ex-McKinsey Coach on the platform
Hi there!
The 40M is an upfront investment cost for the integration of the platform. So it should only be deducted once.
Thanks!
Cristian
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Alessa
am 24. Feb. 2025
Coach
xMcKinsey & Company | xBCG | xRB | >400 coachings
Hey there ?, based on the wording, the $40 million is intended to be an annual cost—as suggested by the phrase "paying close to £46 million per year"—so the calculation you mentioned likely represents just one year’s figures rather than a one-off payment. Best, Alessa ?

Pedro
am 28. Feb. 2025
Coach
Most Senior Coach @ Preplounge: Bain | EY-Parthenon | RB | Principal level interviewer | PEI Expert | 30% in October
Seems to be one-off. But in a real interview this is something you would be able to clarify.

Thabang
am 1. März 2025
Coach
Top Rated McKinsey Coach | Ex-McKinsey | Top MBB Coach
Hey there,
My read on this is that the $40m is a once-off cost, not annual
All the best
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