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Benefits realized after costs

YodaPhone
New answer on Oct 09, 2020
3 Answers
1.4 k Views
Raouf asked on Oct 08, 2020

There's just a slight error in the calculation of the benfeits realized after costs.

We have to calculate the actual costs which represent the costs of 5.5 teams (4.5 teams is the cost savings and not the costs).

Cost = 5.5*12*100k=6.6 M

Benefits = 14.1 - 6.6 = 7.5 M

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Robert
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replied 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?

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Raouf on Oct 09, 2020

It wasn't a question. Just an issue with precision.

Raouf on Oct 09, 2020

Not a question but calculations leading to other results and conclusions.

Clara
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replied on Oct 09, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Why don´t you write the author directly? He is in PrepL.

Cheers,

Clara

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Ian
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replied on Oct 09, 2020
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi Raouf,

Thanks for pointing that out! Yes, the case needs to be updated (should be fixed shortly)

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