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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
1.3 k
Views
56
Total Upvotes
on Nov 11, 2023 on Nov 11, 2023
Last Activity

NPV - ROI : can someone help me in understanding the difference in usage?

Investment NPV ROI calculation
Most recent answer on Sep 01, 2023
Anonymous gave the best answer on Nov 09, 2018
OK, an answer on this could fill a book, but I'll do my best. NPV means, as you surely know, the Net Present Value of a series of Cash Flows (from an investment for example). That means that all cash flows resulti ... (read entire answer)
2
Answers
7.8 k
Views
8
Total Upvotes
on Sep 01, 2023 on Sep 01, 2023
Last Activity

Fixed costs depreciating factor

Investment ROI calculation
Most recent answer on Jan 18, 2023
The best answer (on Jan 17, 2023) is from:
Hagen
Expert
#1 Bain coach | >95% success rate | interviewer for 8+ years | mentor and coach for 7+ years
Hagen
Expert
 gave the best answer on Jan 17, 2023
#1 Bain coach | >95% success rate | interviewer for 8+ years | mentor and coach for 7+ years
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: Including a depreciating factor can be useful in certain situations where the fixed as ... (read entire answer)
2
Answers
486
Views
10
Total Upvotes
on Jan 18, 2023 on Jan 18, 2023
Last Activity

Caculations / quant questions

Case Calculations Investment profitability quantitative ROI calculation
Most recent answer on Oct 02, 2021
Anonymous gave the best answer on Sep 29, 2021
Hi Rachel, Great question! Not sure if you are familiar with the GMAT, but the test has a quantitative section with questions that are quite similar to the quantitative questions in a Consulting Case Study.   I found ve ... (read entire answer)
5
Answers
1.0 k
Views
55
Total Upvotes
on Oct 02, 2021 on Oct 02, 2021
Last Activity

How to do this ROI calculation

ROI calculation
Most recent answer on Jul 03, 2021
The best answer (on Jul 03, 2021) 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 Jul 03, 2021
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching
Hi there, I believe you mean 12.5M total, not per year, and 50% ROI per year. If that’s the case, given the ROI should be 50% of the investment, the yearly return needed is going to be 5*0,5=2.5 (given ROI = Net Pro ... (read entire answer)
4
Answers
805
Views
44
Total Upvotes
on Jul 03, 2021 on Jul 03, 2021
Last Activity

How to properly compute the ROI of a project with several cashflows?

opportunity assessment ROI calculation
Most recent answer on May 01, 2020
Anonymous gave the best answer on Apr 20, 2020
Hi Clara, Great question, thanks for reaching out! First, let's agree what we mean by ROI and why we want to calculate it. In this simplest case ROI is the same as IRR (because it’s a project with a fixed timeline), ... (read entire answer)
3
Answers
2.1 k
Views
9
Total Upvotes
on May 01, 2020 on May 01, 2020
Last Activity

ROI - do i need to annualize

ROI calculation
Recent activity on Mar 05, 2020
The best answer (on Mar 03, 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 Mar 03, 2020
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Short answer - you have to ask! Please clarify what ROI means for the client - annualized or total return. Never just assume something! Cheers, Sidi
4
Answers
1.4 k
Views
1
Total Upvotes
on Mar 05, 2020 on Mar 05, 2020
Last Activity

What goes under the Capital Employed, when calculating the ROI? (PP&E, Inventory, AR, AP, Cash?)

ROI calculation
Most recent answer on Aug 05, 2019
The best answer (on Aug 05, 2019) is from:
Paul
Expert
PL-level BCG experience (6 years)|Interviewer at BCG| 6/6 personal + 95%+ candidates offer success rate
Paul
Expert
 gave the best answer on Aug 05, 2019
PL-level BCG experience (6 years)|Interviewer at BCG| 6/6 personal + 95%+ candidates offer success rate
Hi, Not sure if you are referring to ROI or ROCE (Return on Capital Employed). The first is Profit from Investment / Cost of investment and is more "cash flow" oriented, so here you do not need to perform a capital ... (read entire answer)
1
Answer
1.7 k
Views
1
Total Upvotes
on Aug 05, 2019 on Aug 05, 2019
Last Activity

How to use DCF, NPV and ROI

DCF NPV ROI calculation
Recent activity on Jun 27, 2017
The best answer (on Jun 27, 2017) is from:
Olu
Looking for solid partners (10+Cases) . Currently preparing for MBB,Tier II & Big 4- Given and Done 15+ cases
Olu gave the best answer on Jun 27, 2017
Looking for solid partners (10+Cases) . Currently preparing for MBB,Tier II & Big 4- Given and Done 15+ cases
NPV= Net Present Value- [-investment +( Summation of FCF/(1+wacc)^t from 1 to t)].This is a basic formula, it is way more involved than the substituting numbers in the formula, typical you would need to create a DCF mo ... (read entire answer)
2
Answers
9.2 k
Views
4
Total Upvotes
on Jun 27, 2017 on Jun 27, 2017
Last Activity

NPV Calculation estimations

Case Calculations ROI calculation
Recent activity on Jun 06, 2017
The best answer (on Jun 06, 2017) is from:
Olu
Looking for solid partners (10+Cases) . Currently preparing for MBB,Tier II & Big 4- Given and Done 15+ cases
Olu gave the best answer on Jun 06, 2017
Looking for solid partners (10+Cases) . Currently preparing for MBB,Tier II & Big 4- Given and Done 15+ cases
Hey John, Before attempting to answer, I would like to clarify the question details. See below: 1. So Discount rate is 10%? 2. Growth rate is 5% but growth starts in year 1. I.e. Yr. 2 realized amount= P ... (read entire answer)
2
Answers
3.6 k
Views
3
Total Upvotes
on Jun 06, 2017 on Jun 06, 2017
Last Activity
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