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Questions on a profitability case "retirement homes"

Retirement homes
Most recent answer on Feb 26, 2020
The best answer (on Feb 26, 2020) is from:
Luca
Expert
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached
Luca
Expert
gave the best answer on Feb 26, 2020
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached
Hello, I will try to address your questions: The text says that "cost side is more important" just because with the first exhibit you can see that revenues per apartment are much higher in Munichthan in Berlin. Th ... (read entire answer)
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1.3 k
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2
Total Upvotes
on Feb 26, 2020 on Feb 26, 2020
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Why aren't investment costs included in fixed cost in a form of amortization or depreciation costs

Retirement homes
Most recent answer on Sep 19, 2019
The best answer (on Sep 19, 2019) is from:
Andrea
Expert
OW | HEC Paris | Helped 20+ people entering BCG, OW, ATK etc.
Andrea
Expert
gave the best answer on Sep 19, 2019
OW | HEC Paris | Helped 20+ people entering BCG, OW, ATK etc.
Hi, that would be an accounting view (investment going to the BS and then depreciating in the IS). But when you look at NPVs you just look at cash outlays, e.g. investment in Year0 and fixed + variable cost in year 1,2 ... (read entire answer)
2
Answers
1.5 k
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4
Total Upvotes
on Sep 19, 2019 on Sep 19, 2019
Last Activity
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