The Hot Knife was $22 at Amazon but you could go with regular utility blades, though this material is supposed to dull blades quite a bit faster. You are going to need to buy foam mats for material which are currently on sale at Harbor Freight for $9 for four 2'x2' mats. I believe I read in timecon's thread that it takes 2 mats for a Halo Reach chest. Hot glue gun and glue are cheap and you should have them anyway. Spray on or liquid Plasti-Dip is $6 at Home Depot. I am including this since this is what preps the surface for painting and you would not need it for pep+hardener methods.
Once you start adding bondo, resin and fiberglass for each piece, I believe the pep+hardener methods get more expensive than foam.
However, keep in mind the foam building method is quite new to the United States(cosplayers in Japan and the Philippines have been using it for quite some time). I have been doing some research into it and it looks like it really started up around May of this year over at the Replica Prop Forums but it has only come into its own around July-August. Because it is so new, there is not a ton of information out there like for resin, bondo, rondo, etc. So you are going to have to be able to think on your feet and develop your own techniques. Also, if making molds is a big deal to you, you can forget about that with foam armor.