4. Your program plans to acquire a total of 600 end items costing $535 million over a five-year period. The first production contract is to be awarded in FY04. The number of items to be procured (not delivered) each year and their estimated cost (in then-year dollars) is shown below:

FY Lot Quantity Total Lot Cost
FY04 50 $ 50 million
FY05 100 $ 95 million
FY06 150 $135 million
FY07 150 $130 million
FY08 150 $125 million
Assuming there is no advance procurement and that this is NOT a multiyear contract, what is the correct amount to include in your budget request for FY04 and FY05 for this contract?

145

$145 was incorrect. Thanks for nothing Stephen, damn.

It is $50 million for FY14 and $95 million for FY15

To determine the correct amount to include in the budget request for FY04 and FY05 for this contract, you need to calculate the cost of the items to be procured in those years.

According to the given information, in FY04, a total of 50 items will be procured at a cost of $50 million. In FY05, 100 items will be procured at a cost of $95 million.

Therefore, the correct amounts to include in the budget request for FY04 and FY05 for this contract are:

FY04: $50 million
FY05: $95 million