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Deleted

on Mar 20, 2022

Global

Question about

Revenue

Hello,

I am not sure how they are finding this 300 euros in revenue. Does somebody know ?

thank you

Tanvi Sachdev

1.4k

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Top answer

Ian

Coach

on Mar 21, 2022

Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi Tanvi,

This one is a bit tricky!

The installation cost per station is 40% of 750€ which equals 300.

The following sentence in the case is your clue:

"Total cost including installation of the station is € 750, of which WyCar would contribute 40% "

2 comments

Deleted user

on Mar 22, 2022

I see that the solution is – the cost per station for WyCar is € 300, just equal to the expected revenue of € 300 over five years (with a negative NPV). In addition, WyCar would be exposed to the risk of decreasing power prices

but sorry I still do not understand how cost and revenue are the same

Deleted user

on Mar 22, 2022

Total cost including installation of the station is € 750, of which WyCar would contribute 40% ---> for me contributing means paying right ? I am not sure to really see the point here

Clara

Coach

on Mar 22, 2022

McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Couldn´t have said it better than Ian.

In a real case, you would ask for clarifications, and they would give you a clue such as “look at the data provided, in case you con obtain answers from there…”

Cheers,

Clara