1.1: Case The Hong Kong Hilton
Why was it profitable to demolish a profitable Hong Kong hotel? The hotel was profitable. It was expected to be profitable in the future. Breaking the management contract was costly.
CHAPTER 1: Avoid Pitfalls!
Opportunity Cost = value of the best foregone alternative to any decision All actions imply an opportunity costs Opportunity costs = true economic costs
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Case 1.2 : How much does it cost to go to Penn?
Tuition and fees: 53,250 Undergraduate expense budget
Case 1.2 : Is this the true cost?
All actions opportunity costs
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Logistics:
https://courseweb.library.upenn.edu/ Stein Rebecca [e-mail] 541 McNeil, Thursdays, 1:30 to 4pm.
Case 1.3: MBA enrollment and economic cycles
What effect will the current recession have on MBA applications & enrollment?
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Case 1.4: Having kids
How much does it cost to raise a child?
Case 1.4 : A few facts
2000 estimate: $165,630 from birth to age 18.
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Case 1.4 : Is this the true cost?
All actions opportunity costs Opportunity cost must include opportunity cost of time for parents. Estimate of direct expenses of first year: $8,740. Estimate of time cost of first year: $23,780. Time accounts for 73% of true cost!
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