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### Traditional cost model
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- Upfront capital costs (CAPEX, capital expenditure): money spent at the beginning of business to get the
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equipment
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- Upfront capital costs (CAPEX, capital expenditure): money spent at the
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beginning of business to get the equipment
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- Variable cost (OPEX, Operational expenditure): operational cost
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- Calculation:
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- Upfront capital costs + Variable costs
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