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NPV vs. ROI; IRR or Break-even: which should I use?

break-even analysis Case Interview Corporate Finance Discounted Cash-Flow financial analysis Net Present Value Private Equity ROI calculation
Most recent answer on Nov 11, 2023
The best answer (on Apr 22, 2023) is from:
Francesco
Expert
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching
Francesco
Expert
gave the best answer on Apr 22, 2023
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching
Hi there, Q: Can any of you advise, with solid justifications, the appropriate case scenarios to use specific metrics of financial evaluation? As simple as it sounds, you should use the one required by the client.  Some ... (read entire answer)
5
Answers
1.2 k
Views
56
Total Upvotes
on Nov 11, 2023 on Nov 11, 2023
Last Activity

Case Interview PwC (Financial Services - Transaction Services)

Case Interview case study Corporate Finance Financial Services M&A PwC PwC Interview Transaction Services
Most recent answer on Nov 10, 2023
The best answer (on Jul 04, 2018) is from:
Vlad
Expert
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Vlad
Expert
gave the best answer on Jul 04, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Hi, Corporate finance interviews are different from consulting and are usually much more technical and detailed in financial part. Usually, they give you much more time to prepare and do the model on paper. Depending ... (read entire answer)
6
Answers
32.8 k
Views
22
Total Upvotes
on Nov 10, 2023 on Nov 10, 2023
Last Activity

Very confusing ROI/return !!!

BCG Corporate Finance M&A
Most recent answer on Aug 05, 2021
The best answer (on Aug 05, 2021) is from:
Ian
Expert
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Ian
Expert
gave the best answer on Aug 05, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, You do realize these 2 formulas are the exact same, right? "ROI =Net Return on Investment​/Cost on Investment or ROI = (Final Value of Investment − Initial Value of Investment)/ Cost of Investment" Net Return ... (read entire answer)
2
Answers
1.6 k
Views
23
Total Upvotes
on Aug 05, 2021 on Aug 05, 2021
Last Activity

How to move from being a Software Engineer in a big hedge fund to MBB?

Application application process application strength Application timing apply or not Corporate Finance financial analysis Financial risk management firsttime Quantitative risk management
Most recent answer on Apr 13, 2021
The best answer (on Oct 09, 2020) is from:
Clara
Expert
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Clara
Expert
gave the best answer on Oct 09, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Hello! It´s not the most obvious move, but there are much more weird ones for sure. As you say, you will need some polishing on client-facing skills and presentation-related skills, but nothing that cannot be done ... (read entire answer)
7
Answers
2.2 k
Views
53
Total Upvotes
on Apr 13, 2021 on Apr 13, 2021
Last Activity

Differences between Tactical demand planning and integrated business planning?

Corporate Finance demand and supply financial analysis planning
Most recent answer on Mar 22, 2021
The best answer (on Mar 20, 2021) is from:
Gaurav
Expert
#1 Career Coach for Aspiring, Practicing & Ex-Consultants|The Only 360° Coach - Ex-Mckinsey, Certified Coach & Recruiter
Gaurav
Expert
gave the best answer on Mar 20, 2021
#1 Career Coach for Aspiring, Practicing & Ex-Consultants|The Only 360° Coach - Ex-Mckinsey, Certified Coach & Recruiter
Hey Santosjh! Could you please clarify the context of your question? If it is a case-related question, please provide the conditions of the problem. Cheers, GB
4
Answers
762
Views
12
Total Upvotes
on Mar 22, 2021 on Mar 22, 2021
Last Activity

Resources to learn corporate valuation in a short time?

Corporate Finance Valuation
Most recent answer on Dec 21, 2020
Anonymous gave the best answer on Nov 11, 2020
I agree with what has been said before. Damodaran is certainly great. There's a good corporate finance class by him available for free (https://www.youtube.com/watch?v=Tdu0QPfoYZQ). Having said that, he (and also the ... (read entire answer)
6
Answers
1.1 k
Views
51
Total Upvotes
on Dec 21, 2020 on Dec 21, 2020
Last Activity

Our client thinks her company has a debt problem. How would you approach this problem?

Cases Corporate Finance debt ratio
Most recent answer on Apr 30, 2020
The best answer (on Apr 10, 2020) is from:
Clara
Expert
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Clara
Expert
gave the best answer on Apr 10, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Hello! Overall agree with what you layed out. I would try to deep dive on WHY they key that they may have a debt problem. Finding the root causes of that suspicion will give you a lot of hints. In order to do so ... (read entire answer)
2
Answers
1.2 k
Views
7
Total Upvotes
on Apr 30, 2020 on Apr 30, 2020
Last Activity

What’s the meaning of discount rate ‘r’ in NPV?

Corporate Finance Finance MBB NPV
Most recent answer on Apr 30, 2020
The best answer (on Apr 09, 2020) is from:
Sidi
Expert
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Sidi
Expert
gave the best answer on Apr 09, 2020
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Hi! simple answer: the discount rate r corresponds to the cost of capital. For equity, the cost of capital corresponds to the opportunity cost of not investing it. This opportunity is the rate of return of riskles ... (read entire answer)
4
Answers
2.1 k
Views
20
Total Upvotes
on Apr 30, 2020 on Apr 30, 2020
Last Activity

NPV of a Perpetuity --> How to improve?

Corporate Finance NPV Valuation
Most recent answer on Apr 30, 2020
The best answer (on Apr 11, 2020) is from:
Luca
Expert
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached
Luca
Expert
gave the best answer on Apr 11, 2020
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached
Hello Dee, Your answer sounds good, you have basically cover all the possibilities. Just remember that there are several ways to increase your yearly cash flow, not only findind new sources of revenues. More over, a g ... (read entire answer)
5
Answers
1.5 k
Views
27
Total Upvotes
on Apr 30, 2020 on Apr 30, 2020
Last Activity

What are typical working capital adjustments that are made for an M&A transaction?

accounting Corporate Finance Deals Deals Strategy M&A
Most recent answer on Sep 25, 2019
Anonymous A asked on Sep 21, 2019
If Company A is acquiring Company B and they hire a company to do the due diligence, what are typical adjustments that would be made to working capital? thanks,.
1
Answer
1.9 k
Views
0
Total Upvotes
on Sep 25, 2019 on Sep 25, 2019
Last Activity

From corporate finance advisory to Management consulting

Corporate Finance Financial Model Valuation
Most recent answer on Aug 22, 2019
The best answer (on Aug 22, 2019) is from:
John
Expert
Ex Bain Case Team Leader I Focus on Private Equity I +80 interviews conducted at Bain I All cases based on real life cases
John
Expert
gave the best answer on Aug 22, 2019
Ex Bain Case Team Leader I Focus on Private Equity I +80 interviews conducted at Bain I All cases based on real life cases
Hi Amed, I would definitely aim for a classic consulting role. It is also not too far away from corporate finance advisory. At Bain, we had many people from Big4 joining from there or their consulting arms. Research t ... (read entire answer)
2
Answers
1.7 k
Views
1
Total Upvotes
on Aug 22, 2019 on Aug 22, 2019
Last Activity

Type of cases in a somewhat hybrid role - preparation tips

consulting Corporate Finance Finance Financial risk management investment banking Private Equity Quantitative risk management Risk Management
Recent activity on Feb 28, 2019
The best answer (on Feb 28, 2019) is from:
Vlad
Expert
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Vlad
Expert
gave the best answer on Feb 28, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Hi, I would prepare for the following: Due-diligence of the target company Synergies calculation of two merging companies 1. For DD you can use the following structure: Market Size Growth rates Prof ... (read entire answer)
1
Answer
2.0 k
Views
2
Total Upvotes
on Feb 28, 2019 on Feb 28, 2019
Last Activity

I got a second round interview at KPMG in the Corporate Finance division, what to expect for in terms of the case I get?

Case Interview consulting Corporate Finance KPMG M&A Valuation
Recent activity on Oct 25, 2018
The best answer (on Oct 25, 2018) is from:
Vlad
Expert
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Vlad
Expert
gave the best answer on Oct 25, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Hi, I would expect an M&A case, detailed in the financial part: Find the relevant information in P&L and Balance sheet Do the simplified valuation using NPV: calculate cash flows and make assumptions abo ... (read entire answer)
1
Answer
4.3 k
Views
3
Total Upvotes
on Oct 25, 2018 on Oct 25, 2018
Last Activity

Corporate Finance in McKinsey

Case Interview Corporate Finance Greater China M&A McKinsey
Recent activity on Jul 18, 2017
The best answer (on Jul 18, 2017) is from:
Vlad
Expert
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Vlad
Expert
gave the best answer on Jul 18, 2017
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Hi, Re 1st question - there are the following differences with a generalist: Additional trainings Separate staffing - You are part of a global practice so you will have opportunities in other countries. You will ... (read entire answer)
2
Answers
8.1 k
Views
5
Total Upvotes
on Jul 18, 2017 on Jul 18, 2017
Last Activity

Corporate Finance Advisory Deparment at McKinsey

consulting Corporate Finance MBB McKinsey
Recent activity on Jan 19, 2017
The best answer (on Jan 19, 2017) is from:
Alice
Alice gave the best answer on Jan 19, 2017
I cant speak for the German office, but I can speak for the Nordic ones. Often finance-background, e.g. banking for experienced hires, and for entry level masters in finance or similar internship experience. Don't think ... (read entire answer)
1
Answer
4.1 k
Views
3
Total Upvotes
on Jan 19, 2017 on Jan 19, 2017
Last Activity

MBB Private Equity / Corporate Finance Practice - Interview different?

Case Interview Corporate Finance MBB Private Equity
Recent activity on May 07, 2016
The best answer (on May 07, 2016) is from:
Peter
Expert
Ex-Bain & Company Case Team Leader * Placed 40+ MBB candidates as Partner in Europe's leading top-tier Consulting recruiting firm
Peter
Expert
gave the best answer on May 07, 2016
Ex-Bain & Company Case Team Leader * Placed 40+ MBB candidates as Partner in Europe's leading top-tier Consulting recruiting firm
Most (all?) MBB firms divide our their private equity practices (sometimes divided into CDD and portfolio) from Financial Services. Assuming you're talking about the former, the process is usually the same in terms of c ... (read entire answer)
1
Answer
6.7 k
Views
1
Total Upvotes
on May 07, 2016 on May 07, 2016
Last Activity
16 results

Consulting Q&A – Ask Questions about Your Career

In this overview, you will find all the questions asked so far by the PrepLounge community. Anyone can ask questions and write answers. Our coaches are also happy to share their expertise. If you like an answer, give it an upvote so that it rises to the top. Here you can also find our guidelines and FAQs for the Consulting Q&A.

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