(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 […]
Tag: net present value
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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 […]