##### Cost of Elements
Direct, Indirect, Common and Special Costs

Four data sets have to be entered in order to compute these costs and finalize the Cost of Elements step:

#### Direct and indirect costs

Enter the following data, all amounts expressed in local currency:

- Net financial debt;
- Long and mean term debts;
- Equity;
- Corporation tax rate.

#### Amortization period required

If the amortization period required is different from the one entered in the previous step, enter the new amounts here. This will have an impact on the net fixed assets and amortisation amounts to be taken into account in the next steps.

#### Impact of monetary erosion on capital return and average interest rate of loans

If the monetary erosion of the country is high, it has an impact on both the capital return and the average interest rate of the loans. To assess this monetary erosion, compute the mean value of the erosion of the last five years with regard to the Special Drawing Rights (SDR).

Enter the expected return on capital and the average interest rate. If the expected return on capital includes taxes, press the corresponding check-box.

Enter the erosion rate and the average loan time. Press “Adjust” to adjust the return on capital and the average interest rate of the loans. These are the values that will be used in the next calculations. These values can be changed manually at any time.

#### Common and special costs

Enter the following data in local currency:

- Provisions for client debts;
- Provisions for other local operators' debts;
- Provisions for international operators' debts;
- Costs for other local operators' relationships;
- Costs for international operators' relationship;
- International services received by third parties;
- International transit fees paid;
- International accounting costs;
- Product study (design);
- Retail outlets;
- Advertising;
- Billing costs;
- Commercial information system;
- Research and development;
- Other costs.

When all the amounts have been entered, press OK and an additional window asking for the current network capacity and used capacity will appear. Entering these last amounts will finalize the Cost of Elements step.