Question 3 Calculations

Question

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?

Answer 1

Hi there!

The 40M is an upfront investment cost for the integration of the platform. So it should only be deducted once.

Thanks!
Cristian

Answer 2

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 ?

Answer 3

Seems to be one-off. But in a real interview this is something you would be able to clarify.

Answer 4

Hey there,

My read on this is that the $40m is a once-off cost, not annual

All the best