Hi everyone, I'm still confused with the calculation of ROI on pregnant women and old women. The chart only shows cash flow, which is the profit - from my understanding. But without knowing the investment, how do you calculate payback time? Can someone help out? Thanks.
BTW, the video doesn't include the calculation.
Hi there,
ROI and payback time are two different things…
Remember that in a case you shouldn't do what you think you're supposed to do. You should do that the case/interviewer leads you to.
Here, there is not enough info for ROI, but there is for breakeven. Make sure you understand the different between ROI, Breakeven, NPV, etc.!
Hi there,
I think this is an interesting question that may be relevant for many people. I would be happy to share my thoughts on it:
If you would like a more detailed discussion on how to best prepare for your upcoming interviews, please don't hesitate to contact me directly.
Best,
Hagen
Ian, Thanks for the explanation. But I'm still confused - why the payback time is 5 years, not 8 years? My understanding is - the company reached break even point in the years of 8, so the pay back time should be 8 years.