Tag: net present value

Case Math

(Source: Flickr) In this post we outline some mathematical concepts that may prove useful for solving consulting case questions. 1. Break Even Analysis: Relevant when trying to decide whether to launch a new product or invest in a project with high fixed costs. 2. Customer Lifetime Value: Customer lifetime value is a prediction of the entire future […]

Tags break even analysis, case math, consulting, consulting interviews, customer lifetime value, Management Consulting, net present value, perpetuity, price elasticity of demand, Product Life Cycle, profit margin, return on investment, rule of 70

Frameworks

NPV: Net Present Value

The NPV of an investment is the present value of the series of cash flows generated by the investment minus the cost of the initial investment 1. Net Present Value (NPV) explained THE net present value (NPV) of an investment is the present value of the series of cash flows generated by the investment minus the […]

Tags case interview, cash flow, consulting, consulting framework, Consulting Frameworks, cost of capital, discount rate, discounted cash flow, framework, interview preparation, net present value, npv, opportunity cost