# Replacement-cost worksheet instructions

Use one row per mutually exclusive scenario for a comparable departure. Do not sum the three example scenarios. All example amounts are synthetic USD.

1. Define the departure, geography, service type, replacement end point, and time window in your assumption register.
2. Internal effort cost = internal hours × loaded hourly cost. Replacement resource cost = external replacement spend + internal effort cost.
3. Lost units = gap demand units × unserved share. The share is a decimal from 0 to 1 and excludes jobs covered elsewhere or deferred without economic loss.
4. Modeled lost contribution = lost units × contribution per unit. Combined estimate = replacement resource cost + modeled lost contribution.
5. Keep cash spend, staff capacity, and opportunity value distinguishable. Do not post the combined estimate as an accounting expense.
6. Preserve evidence and an owner for each input. Do not insert contractor tax identifiers or personal documents. Test lower demand and substitute coverage before using a base case.

The example assumes no additional coverage premium or service penalty. Add separately only when supported and avoid double counting. CSVs contain plain values, not live formulas.