Your program has a research and development project scheduled to start in January 2014 which is expected to take 40 months to complete. The project is expected to cost a total of $150 million (then-year dollars), with cost expected to be incurred as follows:
FY
Cost to be incurred
FY14
$20 million
FY15
$48 million
FY16
$50 million
FY17
$32 million
What is the correct amount to include in your budget request for FY14 and FY15 for this project?
$ 20M for FY14 and $130M for FY15
$150M for FY14 and $ 0M for FY15
$ 20M for FY14 and $ 48M for FY15
$ 48M for FY14 and $ 50M for FY15
$ 48M for FY14 and $ 50M for FY15
To determine the correct amount to include in the budget request for FY14 and FY15 for this project, we need to consider the cost to be incurred in each fiscal year.
According to the given information, the cost to be incurred is as follows:
FY14: $20 million
FY15: $48 million
FY16: $50 million
FY17: $32 million
So, the correct amount to include in the budget request for FY14 and FY15 would be:
$20 million for FY14 and $48 million for FY15.
Therefore, the correct answer is:
$20M for FY14 and $48M for FY15.