Develop a chain of prompts that guides a user through calculating the opportunity cost of various business decisions. The chain should begin by prompting the user to describe a specific business decision they are considering (e.g., investing in new marketing campaign vs. hiring a new employee). Subsequent prompts should systematically guide the user through quantifying the potential gains and losses associated with each alternative. For each alternative, the prompts should elicit information on: </p>
<p>1. **Potential Revenue/Profit:** What is the estimated increase in revenue or profit if this option is chosen? Provide a range of estimates (best case, most likely case, worst case).<br />
2. **Time Investment:** How much time will this option require from the user and/or team? Convert this time into a monetary value based on hourly rate or opportunity cost of that time spent elsewhere.<br />
3. **Resource Investment:** What other resources (e.g., money, personnel, materials) will this option require? Quantify these costs.<br />
4. **Potential Risks:** What are the potential downsides or risks associated with this option? Quantify these risks in monetary terms if possible (e.g., potential loss of revenue, fines, etc.).</p>
<p>After gathering information for each alternative, the chain should then calculate the net present value (NPV) for each option. Then, calculate the opportunity cost by subtracting the NPV of the chosen option from the NPV of the next best alternative. Finally, the chain should present a clear summary of the analysis, including the NPV for each alternative, the opportunity cost, and a concise recommendation based on the analysis. The output should be formatted as a table showing each alternative, its NPV, and a final calculation of the opportunity cost. Consider scenarios where non-monetary factors are important; the prompt should guide the user to weigh these factors qualitatively. The final recommendation should incorporate both quantitative and qualitative aspects. Example: Option A: NPV = $10,000, Option B: NPV = $8,000. Opportunity cost of choosing Option A = $2,000.
Chain Prompt: Multi-Scenario Opportunity Cost Calculator for Business Decisions
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