why 110m * 10%? where is the 10% from?
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Hi Isabella, thanks for your question. To breakeven we have to put NPV = 0 that is:
Total recurring profits / ( Discount rate - Growth rate ) - Total investment = 0
Therefore:
Total recurring profits = ( Discount rate - Growth rate ) * Total investment = (12% - 2%) * $110M
Does it make sense?
Best,
Antonello
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Hello Isabella!
I would suggest you to reach out directly to Antonello, he is a coach in this platform!
he is the author and will be able to help you the best, and even perhaps coach you
Hope it helps!
Cheers,
Clara
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