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S2E17: McKinsey Case Interview Example

Strategy Simplified

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Can We Price All General Acres at the Premium?

So in general acre, the average benefit is 240. Is that it for all general acres? Is that across the whole portfolio or is that for some general acres? I think that was on the average acre of the market was 6,000. So I took 4% of the 6,000 to get 240. And that would be true if we could price all of them at the premium. But we can't actually get them all to the market during that period. We're going to price what we believe half the value is so that they get some of that potential value.

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