Certainly! Here's an SEO-friendly HTML answer for the interview question:

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Financial Model Example: Walking through Assumptions

When building a financial model in the past, I focused on predicting revenue growth for a startup company. The core assumption I made was that the market size would expand by 10% annually. This assumption was based on industry research and historical data analysis.

Additionally, I assumed a conservative 5% increase in operating expenses to account for potential growth and scaling challenges. This assumption aimed to strike a balance between realistic projections and room for error in case unexpected costs arose.

Moreover, I incorporated a variable for potential customer acquisition costs, factoring in marketing strategies and customer acquisition pipelines. This assumption allowed for sensitivity analysis and optimization of marketing efforts.

By carefully considering these assumptions and aligning them with the company's growth strategy and market dynamics, the financial model provided valuable insights for decision-making and strategic planning.

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