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Raouf

on Oct 08, 2020

Global

Question about

Single-decker costs mistake

There's an error in the calculation of the single-decker costs. We have to mulitply the depreciation per mile and the fuel by 20 and not 10 because a trip/route is 20 miles.

Thus, the payback is 4,8 years and is not that interesting for our client since a 3 year payback is required.

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Top answer

Robert

Coach

on Oct 09, 2020

McKinsey offers w/o final round interviews - 100% risk-free - 10+ years MBB coaching experience - Multiple book author

OK .. so what's your question here in the Q&A forum?

Clara

Coach

on Oct 09, 2020

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

Hello!

I advise you to writte the author directly, instead of posting here, since this is a Q&A

Cheers,

Clara

Ian

Coach

on Oct 09, 2020

Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi Raouf,

Good catch! Would be good to reach out to the author of the case to let them know :)

Top answer by

Deleted user

The explanation is wrong but the answer is right. There is a mistake in the first part of the explanation, where a 10... (read entire answer)

The explanation is wrong but the answer is right. There is a mistake in the first part of the explanation, where a 10 should be a 20. Cost per trip = (420k / 300k + 0.5) * 20 +... (read entire answer)

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