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Fees Costs - $10M or $1M?

Chinese Chess - Airline Business During COVID-19
Neue Antwort am 7. Jan. 2021
2 Antworten
1,8 T. Views
Nikita
Kompetent
fragte am 4. Jan. 2021
Manager at PwC UK, Technology Risk practice

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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Ian
Experte
Content Creator
antwortete am 5. Jan. 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

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
Experte
Content Creator
antwortete am 7. Jan. 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Good catch :)

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Ian

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