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Question 3 Calculations

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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Beste Antwort
am 22. Feb. 2025
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

Alessa
Coach
am 24. Feb. 2025
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
Coach
am 28. Feb. 2025
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
Coach
am 1. März 2025
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