To calculate benefits realized after costs, don't we need to include the costs in the past 2 years?
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Includes costs in the first 2 years?
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Well, question for you….did we save those costs from the past 2 years thanks to our changes?
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Thanks for the quick response, Ian! No, so I would focus on the cost savings. If the interviewer specifically asks about the benefits after the costs, I would ask about the costs in the first 2 years. Am I overanalyzing it?
You are overcomplicating indeed! The 1st 2 years are sunk cost. There are NOT benefits/cost savings from the 1st to years - they are already behind us. Therefore, we just focus on the final year savings :)