The Cost-effectiveness model shows economic viability of the digital teaching method with video creation. To assess it’s resource-effectiveness, the costs required for its design, development and implementation are estimated together with the possible pay off period.
In the table below you can see the main input values parameters which are used to count cost-effectiveness.
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To assess economic viability of flipping lectures with video materials we employ classical investment modeling, known also as capital budgeting analysis. Among widely used are net present value (NPV) that reflects total project value in monetary terms; internal rate of return (IRR) that represents the threshold discount rate at which NPV would be zero; and discounted payback period (DPP) that shows a period of time after which the investment pays off.
The investment modeling is applied for particular cases of the conducted experiments described above.
The cash flows are defined based on the time resources spent/saved and their cost, in particular salary of the assistant and the professor.
Thus, initial costs of video creation are calculated as the time spent by the professor and the assistant multiplied by their salaries plus some other so called infrastructure costs, whereas the revenue stream is defined as saved professor’s time due to replacing lecturing with the video material multiplied by his salary. Here two important factors are involved, namely the repetition rate or how many times the video material is used per year and the compressibility that expresses how much longer the lecturing time substituted by the video in comparison to the duration of the corresponding video material.
Though these values are course- and professor-specific, generally vary from 2-4. The effect of the replacing lectures with videos is calculated for 10 years and the cash flows are discounted at 1% rate to reflect the time value of money.