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Basically, there are 2 cost reduction types: Short-term/Immediate and Long-Term/continuous.
Short term cost reductions can be measured in just 1 year (so, multiply the annual expense by the reduction).
Long-term costs are considered perpetuity so should have an NPV calculation (cost saving divided by discount round), with a discount rate of 10%
Remember the listed costs are monthly so you need to multiple by 12.
The important thing here is the simplification. Like with most cases, the math isn't as thorough as what we would do in real life, but for the purposes of a 20 min case we simplify.
Hi, I took the SOVA test a couple of months ago and got invited for the 1st round of interviews. I did not do amazing... (read entire answer)
Hi, I took the SOVA test a couple of months ago and got invited for the 1st round of interviews. I did not do amazing with time, spent 30 to 40 minutes above the recommended tim... (read entire answer)