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Where the time and money is made up is through QA and maintenance of the app. If the code is rock solid from V1 on, then the theory is that it'll require less time and maintenence in the long run.
I think that is one of the main takes from the post; We need to think in terms of Software Production rather than just the coding part of the process. I think Doron from Typemock post gives a really good real world example of how TDD can save save time and improve quality and confidence.
http://blog.typemock.com/2008/08/why-tdd-rocks....