Interviewer view · keep this screen to yourself
A national fund invests in a battery plant
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
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
A fictional national fund invests SAR 2 billion in a local electric vehicle battery plant. It expects to receive SAR 4 billion back after 8 years, and the plant should create 3,000 jobs. The fund requires a return of 8 percent a year. Is the return enough? Use the rule of 72: money doubles in about 72 divided by the yearly return (in percent) years.
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.
- Financial return first, then strategic value
- Multiple of money (MOIC)
- Approximate yearly return with the rule of 72
- Key: Investment per job created
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: Multiple of money
What a strong candidate does: SAR 4 billion back on SAR 2 billion invested.
Multiple on invested capital: 4 ÷ 2 = 2
Step 2: Approximate yearly return
What a strong candidate does: Money doubles in 8 years, so the return is about 72 divided by 8.
Approximate yearly return (percent): 72 ÷ 8 = 9
Step 3: Margin over the requirement
What a strong candidate does: 9 percent against 8 percent.
Return above requirement (points): 72 ÷ 8 - 8 = 1
Step 4: Investment per job
What a strong candidate does: SAR 2 billion divided by 3,000 jobs.
Investment per job created (SAR): 2,000,000,000 ÷ 3,000 = 666,667
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
The fund should invest only as a marginal deal, because doubling its money in 8 years gives about 9 percent a year against an 8 percent requirement. First, a 1 point cushion leaves little room for delay or cost overrun. Second, the plant's 3,000 jobs cost about SAR 667,000 each, a trade-off the fund should state openly. The risk is delay: receiving the SAR 4 billion one year later would bring the return down to about 8 percent. As a next step, test the return under delays and cost overruns before committing.
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?
Total
0 out of 25
Score all five criteria to see the band and the feedback template.