The life cycle cost of the BLUEBIRD system is $600 million. The program acquisition cost is $400 million and the development cost is $150 million. There are no facilities costs. What is the procurement cost of the BLUEBIRD system?
$200 million
$150 million
$250 million
$100 million
250
Your program has a research and development project scheduled to start in January 2004 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:
A) FY04 $ 20 million
B) FY05 $ 48 million
C) FY06 $ 50 million
D) FY07 $ 32 million
:
250
To find the procurement cost of the BLUEBIRD system, we need to subtract the program acquisition cost and the development cost from the life cycle cost.
The program acquisition cost is given as $400 million, and the development cost is given as $150 million.
Subtracting these costs from the life cycle cost, we get:
$600 million - $400 million - $150 million = $50 million
Therefore, the procurement cost of the BLUEBIRD system is $50 million. None of the given options match this answer, so it seems there might be an error in the provided options.