This case tests financial modeling fundamentals through a real-world investment scenario. The candidate must build a revenue model with seasonal variations, apply time-value-of-money concepts (Rule of 72), and work backwards from required ROI to determine maximum bid price—a practical valuation exercise.
A friend of mine is super rich and is always looking into interesting investment opportunities. To raise funds for renovation, Ferris Wheel management in Chicago is considering inviting bids from High Net Worth Individuals (HNIs) to let them run the Wheel for a whole year, 7 years later.
As a fan of Chicago and the Wheel, my friend wants to bid on this opportunity and wants to know how to go thinking about this.