Interviewer view · keep this screen to yourself

Is a cost-saving project worth it?

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

A logistics firm in Dubai can spend AED 15 million now on new software that saves AED 2 million every year, with no planned end date. The discount rate is 8 percent. Should it invest?

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

NPV = value today of the savings minus the investment
- Value of savings = yearly saving divided by the discount rate
- Subtract the AED 15 million investment

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Value the savings today
What a strong candidate does: The saving continues with no end date, so use the perpetuity shortcut: 2 divided by 0.08.
Value of savings (AED millions): 2 ÷ 0.08 = 25
Step 2: Subtract the investment
What a strong candidate does: The savings are worth 25 million today. The project costs 15 million today.
NPV (AED millions): 25 - 15 = 10
Step 3: Check the payback too
What a strong candidate does: A simple payback check: 15 million divided by 2 million a year.
Payback (years): 15 ÷ 2 = 7.5

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

The firm should invest, because the savings are worth about AED 25 million today against a cost of AED 15 million, an NPV of about AED 10 million at the 8 percent discount rate. The main weakness is time: payback takes about 7.5 years, which means much of the value depends on savings lasting well beyond that. The risk is that the software becomes outdated and the AED 2 million of yearly savings stop early. As a next step, confirm the savings with the operations team and check how long similar systems stay in use.

Risks a strong answer names: The savings may not last forever, for example if the software becomes outdated; A higher discount rate would reduce the value.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.