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Question on the case: RWE Consulting Case: Floating Wind in Japan

What is meant by 'Leasing'? [Exhibit 4]

Consulting@RWE Case: Floating Wind in Japan
New answer on Oct 24, 2021
2 Answers
1.1 k Views
Tim asked on Oct 23, 2021

Hi all,

What is meant by 'Leasing'? [Exhibit 4] in the fixed cost bucket?
Costs for the offshore property the wind turbine is located on?

In addition: What about the costs / interests for credits and rents for the buildings your staff is working in? Are they negligible as they are too low?

Best and many thanks in advance

(edited)

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Ian
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 replied on Oct 24, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi Tim,

Leasing essentially means renting. Here, it looks like it's referring to actually leasing the construction site (i.e. that piece of land).

I'm not 100% sure but this is how I'm interpreting that cost.

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Clara
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 replied on Oct 24, 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hi there! It´s the cost of the “rental”. Cheers!

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