So, Princeton would need to take about $150 million out of their endowment to try to establish a new law school in a crowded market. Think about it. Princeton is in the middle of nowhere. That means trying to muscle in on Yale, Harvard, Columbia, NYU, Penn amd Cornell in the Northeast. Add Stanford and Chicago for federal or Duke, UVA and Georgetown for feeding directly into DC (not to mention the rest of the T14 on a national level)
Alternatively, Princeton could build $180 million neuroscience center.http://www.princeton.edu/main/news/arch ... /87/78G46/
Or a $136 million undergrad dormitoryhttp://www.businessweek.com/magazine/co ... 784589.htm
Or have an undergraduate financial aid program that makes a mockery of sticker price.http://www.princeton.edu/admission/fina ... qualifies/
It's Princeton. They replant a massive garden every year because it has its own dedicated endowment and they're not allowed to spend the money on anything else. The alumni from their undergraduate program probably hire enough in-house counsels to place an entire law class. Setting aside such minor issues as "should they," "why would they want to", and "where would they put it," they certainly COULD do it.
[I like how you attempt to quantify the costs of starting up a law school, if anything you're probably underestimating the price, but they're really pretty nuts down there.]