Capital One · Product & Business Case
Design theme-park profit model and bid decision
TrueInterview
October 7, 2026 · 1 min read
You are assessing pricing and a land purchase decision for a Disney-style theme park. Baseline: 10,000,000 unique visitors per year. Each visitor buys exactly one of three products; the mix is 60% Day Pass, 30% 3-Day Pass, 10% Annual Pass. Ticket prices and average visits per buyer are: Day Pass $120 for 1 visit; 3-Day Pass $300 for 3 visits; Annual Pass $800 for 6 visits. Variable operating cost is $25 per visit (regardless of pass type). Ancillary gross margin (food/merchandise, after cost) is $12 per visit. Ignore existing fixed costs. A land auction opportunity would raise unique visitors by 15% starting next year for 10 years with the same mix and spending behavior. The one-time purchase price is $1.2B paid upfront; incremental fixed operating cost is $100M per year; discount rate is 10%; terminal value is $0 at the end of year 10. Tasks:
- Compute current annual contribution profit (ticket revenue plus ancillary revenue minus per-visit variable costs).
- Compute the 10-year NPV of the land project and state whether you would bid, and explain why.
- Identify the three most critical assumptions to stress-test, and show a simple sensitivity (±10%) on each to see how the decision boundary shifts.
- If capacity constraints cap total annual visits at 30,000,000, explain how you would adjust your analysis and what data you would need to validate the assumptions. Overview: This question assesses a candidate's skills in quantitative pricing analytics, contribution-margin and NPV financial modeling, sensitivity analysis, and capacity planning in the Analytics & Experimentation area for a data scientist position. This question came from a data scientist interview experience.