We are assembling a top team across the company to look at the feasibility of adding a daily section of the newspaper and website devoted to national sports coverage. This would entail a significant expansion upon our current coverage with highlights of key games, sports scores, standings, etc. We have been asked to build a basic financial analysis to demonstrate what level of incremental revenue we have to assume to target acceptable levels of return.
Key assumptions for the business case:
Please prepare a 3 year financial model that you will present to the management team. The analysis needs to demonstrate what level of incremental revenue is needed over a 3 year time horizon to meet our 10% hurdle rate. In addition, the analysis should touch on other key metrics such as NPV, IRR, and annual EBITDA impact.
This question belongs to finance and discusses about financial model to demonstrate level of incremental revenue to meet 10% hurdle rate.
Word count: NA
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