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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Seems to be one-off. But in a real interview this is something you would be able to clarify.
Hey there,
My read on this is that the $40m is a once-off cost, not annual
All the best
Hi there!
The 40M is an upfront investment cost for the integration of the platform. So it should only be deducted once.
Thanks!
Cristian
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 ?
