great videos ,, keep it up ,, i also like the variety you are offering that that you are getting into more advanced analysis .. you are one of a very few that offers this kind of content ,,
@assassinator006
Жыл бұрын
Thanks! Great variant. One suggestion - it will be even more helpful if you could add a difficulty metric/ranking to the case videos...that would help in tracking individual progress, as we solve the case along with the video.
@rocketblocks
Жыл бұрын
Glad you like it! Subscribe for more!
@PoojaMukherjee-ci7rd
Жыл бұрын
Very informative and helpful. Thanks for explaining NPV and other business terms so well.
@rocketblocks
Жыл бұрын
Glad it was helpful!
@markbruno8910
Жыл бұрын
Great video. I would have also explored Economic Value Added (EVA) as a metric for evaluating which process actually adds economic profits (as opposed to accounting profits) to the firm. NPV is great bc it accounts for the risk, but what about ROIC beyond the cost of capital/discount rate? Just another way to analyze which process to recommend. Great job!
@rocketblocks
Жыл бұрын
Thanks Mark, glad you enjoyed!
@assassinator006
Жыл бұрын
QQ : Can someone explain how the NPV numbers were arrived at? Per my knowledge, the formula is Future Value = Present Value x {(1+Discount Rate)^time} - Initial investment
@itswyke
Жыл бұрын
I don't get it either. He did PV = CF / 20%, when I think it'd make more sense to do CF/(1+20%) assuming he only counts 1 year from now. On top of that, I don't really understand either how it helped gaining a more long-term overview, since he wasn't given any cashflow over 1 year from now?
@leylabashirli8923
Жыл бұрын
I do agree with you that his PV calculation was wrong. Actually the profit that he has found is the profit over 1 year from now like forecasted profit.@@itswyke
@stanvanillo9831
7 ай бұрын
He assume it runs for perpetuity, then the formula is CF/d@@itswyke
@mskpir00
Жыл бұрын
Revenue calculations seem a bit off. 100m was the input. So shouldn't that have been used to calculate the volume in lbs. Then volume should have been multiplied by sales price to come up with the revenue . Directly multiplying sales price to input and yield doesn't make sense
@reemfahim1798
Жыл бұрын
you need to take into consideration the yield % when you are calculating the revenue ,, so did you account for this
@itswyke
Жыл бұрын
100m was the input, and the yield was the percentage if the input that would be converted to output. So with a 100m as input, and a 50% yield, the output would be 50m. This is the volume of goods in lbs, and this is exactly what he did.
@abhimanyujain
Жыл бұрын
Nice complex case.
@rocketblocks
Жыл бұрын
Glad you like it! Subscribe for more!
@geonikhil
9 ай бұрын
Irritated by Eishan's constant beard touching! Lol
@MirmelliExecutive
Жыл бұрын
Amazing video! I'm becoming a fan of Yatharth with every video I see him in. I'm confused as to how Eishan landed on Option C having an NPC of $360M: if the cashflow was $60M, the discount rate 20%, and the initial investment $240M. (60*5)-240=60 Can somebody help me understand? 🥲
@rocketblocks
Жыл бұрын
Thanks! You can book a 1-on-1 coaching session with Yatharth here: www.rocketblocks.me/contributors/yatharth-sharma.php
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