From the course: Evaluating Business Investment Decisions
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Estimating input costs
From the course: Evaluating Business Investment Decisions
Estimating input costs
- [Instructor] In order to help ABC Enviro make a decision on whether or not to invest in AI, we need to build a profile of something called input costs. Now, input costs are essentially, all the expenses that the project is likely to incur to deliver its intended outcomes. Now, to follow along with me make sure that the Excel exercise file for this video is open. Okay, what you're looking at here is the start of a business investment analysis model. If you're not already there, then go ahead and click on the Assumptions worksheet. Now, you'll see that we've populated this table with relevant data and we'll come back to this later on. Now let's go to the Inputs worksheet. What you can see is a list of cost items, but no dollars. Whilst this list has been prepared earlier, there may in fact be a number of other input costs needed to deliver something as sophisticated as ENV AI. So, I've purposely kept things simple here,…
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