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Difficulty in understanding what accumulated profits mean in the context of this graph; case interview math

Bain Bain & Company BCG break-even break-even analysis Investment McKinsey McKinsey & Company quantitative analysis

Question edited on Jul 25, 2022

Moritz

Expert

ex-McKinsey EM & Interviewer | 7/8 offer rate for 4+ sessions | 90min sessions with FREE exercises & videos

Moritz

Expert

gave the best answer on Jul 25, 2022

ex-McKinsey EM & Interviewer | 7/8 offer rate for 4+ sessions | 90min sessions with FREE exercises & videos

Hi there, Here’s my take on your question: What I did not understand: when we can already see that for Y2, increase in profits from year 1 is 2M, which is equal to the value of our investment; why are we calculating the ... (read entire answer)

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on Jul 25, 2022 on Jul 25, 2022
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BREAK EVEN POINT=N. OF YEARS

BCG 1st round BCG McKinsey and Bain break-even break-even analysis HelpASisterOut MBB

Most recent answer on May 01, 2020

Daniel

Expert

McKinsey / ex-Interviewer at McKinsey / I will coach you to rock those interviews

Daniel

Expert

gave the best answer on Mar 31, 2020

McKinsey / ex-Interviewer at McKinsey / I will coach you to rock those interviews

Payback period = investment costs / cash flow per year (revenue-costs) = how many years you need to get back what you invested Break-even in years = fixed costs = (revenues - variable costs) = at what year you will ac ... (read entire answer)

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on May 01, 2020 on May 01, 2020
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