Economics of test automation

How to calculate the cost of test automation:
Cost of test automation = Cost of tool(s) + Labor costs of script creation + Labor costs of script maintenance
 
If a test script will be run every week for the next two years, automate the test if the cost of automation is less than the cost of manually executing the test 104 times.
Automate if:
Cost of automation  <  Cost of manually executing the test as many times as the automated test will
be executed 

 

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