Fees Costs - $10M or $1M?

Hi Ian,

Thanks for the interesting case!

Should the Monthly Fees in the Exibit 1 be equal to $10M, not $1M? This is as per the calculations provided in the Cost Reduction Calculations section, where we assume Fees to be 10M per month.

Thanks!

Nikita

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Top answer

Ian

Coach

on Jan 5, 2021

Hi Nikita,

My pleasure! I'm glad you enjoyed it :)

That's a great catch! You are indeed correct. So, the new cost savings should be $531.1 ($4.5M lower than the current answer).

I'm having the case updated now. Thanks for pointing this out!

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Clara

Coach

on Jan 7, 2021

McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Good catch :)