Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Interview Partners to connect and practice with!
Back to overview

Graphics and Concluding question

In the Graphics “Economics over time” it should consider the big revenue every five years.

 

Quote:

"Ask the candidate: Does the 20% p.a. strike one as a credible return on an investment-grade wine? Why or why not? How does it compare to other returns you know?

 

Well, yes, it’s extremely aggressive but not completely implausible. It’s certainly not a sustainable return!"

 

I think that the answer is quite weak. Could someone elaborate a bit more? I thought that 20% was an actually quite high appreciation and that it would probably be closer to 5%. At least it wouldn't make sense to me that all years appreciate equally. Particularly the first ones. Could someone share their views on that please?

1
800+
10
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Deleted user
on Dec 18, 2022

Wine has been growing at almost 10% CAGR since 2003. To be at 20% you would need to outperform this benchmark on a consistent basis. That is a very aggressive assumption.

6
Similar Questions
Consulting
Has anyone tried any of the AI Interview Tools for MBB before?
on Mar 25, 2025
Global
10
11.3k
Top answer by
Iman
Coach
Systemiq | Ex-BCG | 10 years experience with 8+ specialising in sustainability | Free Intro | Ex-PrepLounge candidate
344
10 Answers
11.3k Views
+7
Consulting
McKinsey PEI
2 hrs ago
Global
7
1.6k
Top answer by
Deleted user
57
7 Answers
1.6k Views
+4
Consulting
Got a lower offer from BCG than expected, should I take it?
on Mar 26, 2025
Global
8
1.6k
Top answer by
Mattia
Coach
Bain & Co | 100+ interviews | Free 30-min alignment call | Experienced Hire | SDA Bocconi MBA
101
8 Answers
1.6k Views
+5
How likely are you to recommend us to a friend or fellow student?
0 = Not likely
10 = Very likely
Thanks for your feedback! Your opinion helps us make PrepLounge even better.