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
my answers $1,5000 million
$1,000 million
$1,1000 million
$$1,4000 million
add the costs,
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.
To calculate the program acquisition cost of the system, we need to add up all the cost types mentioned. Let's break it down:
Research and Development Cost: $400 million
Procurement Equipment Cost: $800 million
Procurement Support Cost: $100 million
Procurement Parts Cost: $100 million
Operations and Support Cost: $70,000 (this value should be converted to millions of dollars by dividing by 1 million, i.e., $70,000 / 1,000,000 = $0.07 million)
Disposal Cost: $100 (this value should also be converted to millions of dollars by dividing by 1 million, i.e., $100 / 1,000,000 = $0.0001 million)
Now let's add up all these costs:
$400 million + $800 million + $100 million + $100 million + $0.07 million + $0.0001 million
= $1,400.07 million
Therefore, the program acquisition cost of the system is $1,400.07 million.
Based on the given options, none of them match the correct answer.