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cost approach method

Carolina Beltrán

Created on April 9, 2024

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cost approach method

By: Carolina Beltrán García Group: 50

Processes Related to Valuation

Step 1: Estimate Cost of Reproduction Formula: Cost of Materials + Cost of Labor + Overhead Expenses Step 2: Deduct Depreciation Types of Depreciation: Physical, Functional, Economic Step 3: Calculate Total Value Depreciated Cost of Improvements + Land Value

Mathematical Formulas

Total Value = (Cost of Reproduction - Depreciation) + Land Value

How can companies create value from their innovation? with cost approach method

Companies can create value from their innovation using the cost approach method in several ways: Improved Efficiency and Cost Reduction, Enhanced Product or Service Quality, Competitive Advantage, Increased Market Demand, Intellectual Property (IP) Value, Long-Term Sustainability

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