# MATH

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WHAT IS THE BELOW PROGRAM ACQUISTION COST OF THE SYSTEM?( COST TYPES COST (IN MILLIONS OF DOLLARS)

RESEARCH, DEVELOPMENT 400 MILLION
PROCUREMENT EQUIPMENT 800
PROCUREMENT SUPPORT 100
PROCUREMENT PARTS 100
OPERATIONS & SUPPORT \$70,000
disposal \$100

\$1,000 million
\$1,1000 million
\$\$1,4000 million

• MATH -

800+400+200=1400M
Now, disposal: is that a cost to procure, or is it a salvage value of some equipment.
If a cost, then add, 1,500M dollars
operations and support are not usually accounted for upfront in procurement, however they can be, especially if O/M is OEM supplied.

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