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| If the growth rate of the affected stakeholder group = 0, then there will be gaps in when the stakeholders incur the cost, and every 'n' years the count of stakeholders at the beginning of the analysis will incur the cost (for frequency = | | If the growth rate of the affected stakeholder group = 0, then there will be gaps in when the stakeholders incur the cost, and every 'n' years the count of stakeholders at the beginning of the analysis will incur the cost (for frequency = |
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− | 1/n). Initial count = 100, 0% annual growth: | + | 1/n). |
− | [[File:Zerogrowth.png|center|thumb|900x900px|Freq = 1/3, Growth = 0%]] | + | [[File:Zerogrowth.png|center|thumb|900x900px|Freq = 1/3, Existing Stakeholders = 100, Stakeholder Growth Rate = 0%|alt=]] |
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| If the growth rate is negative, then there will be gaps in when the stakeholders incur the cost, and every 'n' years there will be a smaller and smaller number of stakeholders incurring the cost. In other words the existing stakeholder count will be diminishing over time, and whoever is still in the market every 'n' years will incur the cost (for frequency = 1/n). | | If the growth rate is negative, then there will be gaps in when the stakeholders incur the cost, and every 'n' years there will be a smaller and smaller number of stakeholders incurring the cost. In other words the existing stakeholder count will be diminishing over time, and whoever is still in the market every 'n' years will incur the cost (for frequency = 1/n). |
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− | [[File:Freq less than 1 negative stakeholder growth.png|center|thumb|900x900px|Freq = 1/3, Growth = -1%]] | + | [[File:Freq less than 1 negative stakeholder growth.png|center|thumb|900x900px|Freq = 1/3, Existing Stakeholders = 100, Stakeholder Growth Rate = -1%|alt=]] |
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| If the growth rate is positive, then it is a bit more complicated. Every year there will be some new entrants (new 'cohorts'), and each cohort of new entrants will be on its own track of incurring costs every 'n' years (for frequency = 1/n). | | If the growth rate is positive, then it is a bit more complicated. Every year there will be some new entrants (new 'cohorts'), and each cohort of new entrants will be on its own track of incurring costs every 'n' years (for frequency = 1/n). |
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− | [[File:Image1111112221.png|center|thumb|900x900px|Freq = 1/3, Growth = 1%]] | + | [[File:Image1111112221.png|center|thumb|900x900px|Freq = 1/3, Existing Stakeholders = 100, Stakeholder Growth Rate = 1%|alt=]] |
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− | Note that with positive stakeholder growth and a frequency less than 1, there are no years with $0 impacts. In the 'off-years' there are still costs because new entrants are entering the market and incurring costs for the first time, and after they incur the cost for the first time they are then on their own unique track to incur costs every 'n' years for frequency = 1/n. In some years multiple cohorts will be incurring costs at the same time, and this is calculated automatically. For example, if the frequency = 1/3 and the activity starts immediately, then the existing stakeholders will incur the cost at the end of Year 1 along with the new entrants from Year 1. This is the first cohort incurring the cost. The new entrants in year 2 will be the only ones incurring the cost in Year 2, and the new entrants in Year 3 will be the only ones incurring the cost in Year 3. In year 4, the first cohort has to incur the cost again (since 3 years have elapsed), and they will do so along with the new entrants in Year 4. In year 5 the new entrants from year 2 along with the new entrants from year 5, and so on. It was a nightmare to get this to work properly in the RCC, especially if you select that it applies to "All Groups". | + | Note that with positive stakeholder growth and a frequency less than 1, there are no years with $0 impacts. In the 'off-years' there are still costs because new entrants are entering the market and incurring costs for the first time, after which they are then on their own unique track to incur costs every 'n' years for frequency = 1/n. In some years multiple cohorts will be incurring costs at the same time. For example, if the frequency = 1/3 and the activity starts immediately, then the existing stakeholders will incur the cost at the end of Year 1 along with the new entrants from Year 1. This is the 'first cohort' incurring the cost. The new entrants in year 2 will be the only ones incurring the cost in Year 2, and the new entrants in Year 3 will be the only ones incurring the cost in Year 3. In year 4, the first cohort incurs the cost again (since 3 years have elapsed since the last time they incurred the cost), and they will do so along with the new entrants in Year 4. In year 5 the new entrants from year 2 along with the new entrants from year 5 will incur the cost. Skipping ahead to Year 10, the following cohorts will incur costs at the same time: 1, 4, 7, 10. It was a nightmare to get this to work properly in the RCC, especially if you select that it applies to "All Groups". |
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| <big>'''TO BE CONTINUED . . .'''</big> | | <big>'''TO BE CONTINUED . . .'''</big> |