unknown formulas

Question

Hello,

I'm wondering how to approach cases where they ask me to make a calculation that I'm not sure how (for example, I did a case that asked me to calculate the risk-adjusted net present value). Is there a proper way to go about this? Or do you just admit that you don't know the formula?

Answer 1

Hi I would suggest that you get yourself familiar with the NPV formula because net present value is a commonly formula in financial analysis including breakeven calculations etc. If the formula is very rarely used, the interviewer would typically give you. If not, l recommend that you ask the formula from interviewer and there is nothing to be ashamed of.

Answer 2

You are never expected to know every formula during an interview. If this is a formula that is unexpected then definitely say you are not familiar and any help would be appreciated. No one will care as long as you can learn and solve the problem.

Answer 3

Hi there,

Unless you are applying for a specialist consulting role with several years of experience, you are not expected to know any formulas.

Case math for 99% of cases is designed so that it can be solved with commonsense, not domain knowledge or memorized formulas, e.g., every break-even calculation could also be approached as a simple cost-benefit consideration.

Cheers,

Florian

Answer 4

I have no idea why those cases are around… no strategy consulting firm asks those questions, and if you don't have a business background it is really not expected to know those things (to be honest… rNPV would probably only be required for a finance graduate).

If there's a formula you don't know… ask for it during the case. That is completely acceptable as they want to know “how you think” and not whether you memorized or not certain formulas.

Answer 5

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Answer 6

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