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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

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
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1.2 k
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56
Total Upvotes

on Nov 11, 2023 on Nov 11, 2023
Last Activity

What does it mean when NPV=0? Is it attractive and why?Thanks!

Actively preparing for interviews with Bain and BCG BCG McKinsey and Bain HelpASisterOut interviewhelp MBB needhelp Net Present Value

Most recent answer on Nov 10, 2023

Anonymous gave the best answer on Apr 01, 2020

Hi, it means that the profit expected (revenues - costs - initial investments) in the future from a project is zero. Thus the project is not particularly attractive itself (at least from a financial point of view). ... (read entire answer)

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37.3 k
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30
Total Upvotes

on Nov 10, 2023 on Nov 10, 2023
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Struggling with understanding simple revenue exhibits (M&A case)

exhibits Net Present Value Revenue analysis Valuation

Question edited on Sep 21, 2023

Anonymous gave the best answer on Sep 21, 2023

Dear, Thank you for the questions. Let me see if I can be of help with the 2 points you mentioned. Question 1 I see there might be a bit of confusion/unclarity here. At first, when I looked at the exhibit you posted, I ... (read entire answer)

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366
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19
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on Sep 21, 2023 on Sep 21, 2023
Last Activity

Looking for exciting discussions from the community?

Does total investment include also purchase price and depreciation?

Net Present Value Valuation

Most recent answer on Sep 15, 2020

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 Sep 15, 2020

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

Hi there! Agree with other comments and would approach it also from a cash flow point of view. In any case, the math of a typical MBB case is not this long and more straightforward. Cheers, Clara

5
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994
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22
Total Upvotes

on Sep 15, 2020 on Sep 15, 2020
Last Activity

Basic Tips and Formulas for Financial Question

financial analysis M&A Case Net Present Value

Most recent answer on Apr 30, 2020

Anonymous gave the best answer on Apr 30, 2020

Hi! Given your background in engineering, it is unlikely the interiewer would grill you on very techincal M&A or investment questions. That said, do prepare for basic business and finance knowlege. Read the cou ... (read entire answer)

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1.5 k
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5
Total Upvotes

on Apr 30, 2020 on Apr 30, 2020
Last Activity

Case: Net Present Value Calculations

Case Calculations Discounted Cash-Flow Net Present Value NPV

Recent activity on Jan 30, 2017

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 Nov 20, 2016

#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching

Hi Anonymous, To answer your questions, I will first describe the theoretical correct valuation approach, and then the simplified approach you can normally apply in consulting interviews. Full DCF Analysis From a ... (read entire answer)

5
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23.9 k
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79
Total Upvotes

on Jan 30, 2017 on Jan 30, 2017
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