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Isabella

on Apr 30, 2021

Global

Question about

why 110m * 10%? where is the 10% from?

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Top answer

Antonello

Coach

on Apr 30, 2021

McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

Hi Isabella, thanks for your question. To breakeven we have to put NPV = 0 that is:

Total recurring profits / ( Discount rate - Growth rate ) - Total investment = 0

Therefore:

Total recurring profits = ( Discount rate - Growth rate ) * Total investment = (12% - 2%) * $110M

Does it make sense?

Best,

Antonello

Clara

Coach

on Apr 30, 2021

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

Hello Isabella!

I would suggest you to reach out directly to Antonello, he is a coach in this platform!

he is the author and will be able to help you the best, and even perhaps coach you

Hope it helps!

Cheers,

Clara