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The CM value is based on its design and development costs and is based on several factors:
(1) |
Where
Vm | = | Value of the model (cost, price of development) |
Ve | = | Value of selected major hardware and software |
fe | = | Factor for estimating major hardware, software and integration parts |
fo | = | Factors for estimating other values (testing, maintenance, and other indirect costs) |
i | = | 1, ,n factor index |
The fe and fo are based on the purchase price of the parts, historical data, and other estimated costs. Value of the CM to its users is also based on their past costs before implementing the model.
(2) |
Where Vu = Value of the model to its users
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