• FC is the final cost ($) • PC is the percentage change in cost (%) ## How to Calculate Initial Cost? The following example problems outline how to calculate Initial Cost. Example Problem #1: 1. First, determine the final cost ($). The final cost ($) is given as 50. 2. Next, determine the percentage change in cost (%). The percentage change in cost (%) is provided as 20. 3. Finally, calculate the Initial Cost using the equation above: IC = FC / (1-PC/100) The values given above are inserted into the equation below: IC = 50 / (1-20/100) = 62.5 ($)

Example Problem #2:

The variables needed for this problem are provided below:

final cost ($) = 60 percentage change in cost (%) = 10 Entering these values and solving gives: IC = 60 / (1-10/100) = 66.66 ($)