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You think they made more than $123M profit from this?? HN numbers are wild.
by paulddraper 2y ago
You think they made more than $123M profit from this??
HN numbers are wild.
- echoangle 2y agoThat’s not strictly necessary for the claim. You have to factor in the odds of getting caught. If you do this and only get caught 10% of the time, you can make slightly less than 1/10 of the fine per case and still make money.
- paulddraper 2y agoFair. Speeding isn't worth a $100 fine. But if you only get caught 1/100 times you speed...
- Scoundreller 2y agoI mean, speeding is a pre-crime
- RandallBrown 2y agoThe article says they made approximately 85 million from this. Since it happened 10 years ago, they may very well have made money on this deal.
- some_random 2y agoIf the DOJ estimate (which is always inflated, let's be real here) is $85M how could they have possibly made more than $123M on it? Unless you're talking about other hypothetical bribes that we don't know about.
- FactKnower69 2y ago$85M in 2014 dollars is $113M in 2024 dollars, and something tells me McKinsey didn't just leave the money sitting in a high yield savings account all this time
- lesuorac 2y agoMixture of time value of money and interest/inflation. You take that 85 Million and invest it (likely into growing a business unit but lets ignore that) and over 10 years it becomes greater than 85 million.
- brailsafe 2y agoI might be splitting hairs here, but they say $85M in profit, not revenue, so presumably that would be margin on top of whatever they paid people to do nothing, and the fine is a portion of revenue that otherwise wouldn't have gone to them, of which $85M was profit. Otherwise though, McKinsey was awarded $209M in federal gov contracts in Canada over 12 years, so the numbers themselves don't seem relatively outrageous in terms of what McKinsey makes news for.