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The process of creating an AV project estimate typically involves a comprehensive approach, which includes calculating all relevant goods, labor, materials, and other projected costs, as well as applying a markup to ensure the project's profitability. By considering a variety of factors such as equipment needs, installation, and any potential overhead costs, the estimate provides a realistic financial picture for the client. This method ensures that all aspects of the project are taken into account, leading to a more accurate and professional estimate that reflects the true cost of the project.

Using only material costs and taxes does not provide a complete picture of the project's expenses, while relying solely on previous project costs can overlook current market conditions and specific project needs. Additionally, while consulting with the client for their budget can inform the estimating process, it doesn't encompass the necessary calculations to provide a comprehensive financial overview. Therefore, the correct approach of considering all costs plus a markup ensures that clients receive a thorough estimate that covers all potential expenses related to the AV project.