This capital cost is made up of two parts. First, there is the replacement cost of substituting the arrow when it is lost in production. This is formula_22, or the competitive price of the arrows, multiplied by the proportion formula_23 of arrows lost after each shot. Second, there is the net rental or return required by the arrows' owner (who may or may not be the same person as the hunter using it). This can be expressed as the product formula_24, where formula_25 is the (uniform) "net rate of return" of the system.