This question was asked during an interview for an investment banking analyst role at a bulge bracket firm in Australia: “How much is the Eiffel Tower worth, and why?”
The candidate’s reply
I answered in three ways:
1. Replacement value (i.e. How much it would cost to rebuild the tower from scratch, inclusive of acquiring the land).
2. Salvage value (i.e. How much the structure could be taken apart for and materials sold for, including the sale of the land).
3. Ongoing business value (i.e. Value of the ticketing / other revenue streams associated with the building) .
After answering in the typical finance fashion, I said something along the lines of: “Having said all the things you want to hear, the bottom line is, it’s priceless.”
How he would have responded in hindsight
I think I did pretty well, however, my MasterCard joke at the end could have backfired if the interviewers were not light hearted. I got the job.
How would YOU have answered?
Use the comments box below to suggest a better response to the interview question above.