Capital cost vs Profile

[Picha lite]

Guys , please answer below

lets assume meku oka product undi

server operations ki 20k avtayi

product value - $5

cost of capital 15% 

oka 1M sales ayinayi ee year

so ipudu profit ela calculate chestam? Do we have to exclude cost of capital too?@Spartan

[Picha lite]

Profile kadu read it as Profit

[TOM_BHAYYA]

2 minutes ago, Picha lite said:

Guys , please answer below

lets assume meku oka product undi

server operations ki 20k avtayi

product value - $5

cost of capital 15% 

oka 1M sales ayinayi ee year

so ipudu profit ela calculate chestam? Do we have to exclude cost of capital too?@Spartan

Calling amaravati experts

[Picha lite]

1 minute ago, TOM_BHAYYA said:

Calling amaravati experts

Haha cheppu vayya 

[mmharshaa]

from layman calculation.... output = 1M sales * 5$ (each product value) = $5M

input = server ops + cost of capital = $20k + 15% = $23k

Profit = (output - input)/ input = 21639% profit

 

[Picha lite]

4 minutes ago, mmharshaa said:

from layman calculation.... output = 1M sales * 5$ (each product value) = $5M

input = server ops + cost of capital = $20k + 15% = $23k

Profit = (output - input)/ input = 21639% profit

 

Thanks 

[Spartan]

Total Revenue = 1M x 5$ = $5M

Operations Cost = 20K

Capital cost = 15%  of what amount.?

Net Revenue = totalrev - opcost

profit = net rev - (cap cost)

[Ram30]

43 minutes ago, Picha lite said:

Guys , please answer below

lets assume meku oka product undi

server operations ki 20k avtayi

product value - $5

cost of capital 15% 

oka 1M sales ayinayi ee year

so ipudu profit ela calculate chestam? Do we have to exclude cost of capital too?@Spartan

profit ante nuvvu pettina amount antha teeseyaga ochinde kada vayya.. 

[shamsher_007]

[Picha lite]

@Spartan one more question

company A has 100M users

company B traffic is 1% of company A users

suppoose Company B decides to run ad campainnn on company A to sell their products. Assume each ad click has 25% varaku leading to purchase, what costtt perr clickkkk shld Company B be willing to pay?

[mettastar]

22 minutes ago, Picha lite said:

@Spartan one more question

company A has 100M users

company B traffic is 1% of company A users

suppoose Company B decides to run ad campainnn on company A to sell their products. Assume each ad click has 25% varaku leading to purchase, what costtt perr clickkkk shld Company B be willing to pay?

1 cent per click man .. fixed rate 

[Spartan]

1 hour ago, Picha lite said:

@Spartan one more question

company A has 100M users

company B traffic is 1% of company A users

suppoose Company B decides to run ad campainnn on company A to sell their products. Assume each ad click has 25% varaku leading to purchase, what costtt perr clickkkk shld Company B be willing to pay?

not sure about those logistics...

but wont that depend on what Company A charges for 25% success rate...

i guess company B will not have a case in this scenario..unless..

Company A encourages people to move to its platform.