1. Perform a Net Present Value (NPV) Analysis for the project. The production costs are assumed to have a yearly fixed cost component of $20 million and an initial theoretical first unit cost (TFU) of $1.5 million per aircraft. Assume that 30 units are made per year and that they are sold at $3 million a piece. Assume a learning curve of 0.9 and a discount rate of 8% and that the UAV is in production for 10 years after completing development.

M B A C F G H K L N . WBS Total Bu 5. 009 000.09 2500 000,00 BAC contract OKT.13 OKT. and ane . OKT Requirements Detieia Vehicle Layout Software and Avionics $4 750 000 $250 000 S0 S0 2 500 000 $0 S0 cn S0 $2 000 000 $2 500 000 $2 500 000 $2500 000 $2 500 000 $1125 000 4 1 875 000 SC SC 15 000 000,00 me Engine & Payload Assembly & Inteeratio tA 687 500 $4 910 710 $4 687 500 so SA A6A 290 S4 910 710 $1 339 290 co 25 000 000.00 $0 SC en S0 $0 $2 500 000 5 000 000 $2 500 000 $0 S0 10 000 000,00 $0 $2 500 000 $5 000 000 500 000,00 9IMR ESERVE $10.000 000 10 MB $S 000 000 TOTAL QTR $4 750 000 $13 255 960 $7 187 500 $3 839 290 $3 625 000 10 $11 062 500 $11 994 040 S9 285 710 $5 000 000 $5 000 000 sn 80 000 000.00 BAC CUM TOTAL () 54 750 000 $18 005 960 $41 062 500 $50 348 210 $57535 710 $61 375 000 $65000 000 $70 000 000 $75 000 000 $80000 000 90 000 000,00 TAB 11 $29 068 460 $80 000 000 12 BAC a034 2013 2016 2022 Year 2018 2019 2021 2012 2028 2011 2014 2023 Requirenents ehkle Lavout ks. Engine& Payleak Assembly and intes 10 Totel Drt Cast (SM Fead Cast vrible Cast SM Rvenuas (SM) Proft/Los 17 Ta __ NPV 21 Usits Preduced 30 30 30 30 30 30 Sat Caunt 24 Year 25 Dcoue Facten Dkcount Re $300 $300 S300 $3,00 $3,00 300 $300 $3,00 $3,00 $3,00 $3,00 $3,00 $3,00 28 Tes10%) 29 e Ra sepa sqp0 s0pa sn on sn on sn on sn on sn on sn on s0,00 s0.00 30 Py e Cavts sopa sapa sog0 so,00 sa.00 A B C D E F G H J K 1Unit 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 9 .. 13 17 14 13 17 11 18 17 - 20 21 20 22 - 14 25 2 26 25 29 28 30 29 30 32 fixed cost so.00 so,00 $0,00 s0,00 so,00 so,00 33 Variable Co t vea $0,00 $0,00 $0,00 $0,00 34 36 In(numerator) 0,045757491 0,9 37 In(2) 0,301029996 38 power 0.152003093 NmS6789: M B A C F G H K L N . WBS Total Bu 5. 009 000.09 2500 000,00 BAC contract OKT.13 OKT. and ane . OKT Requirements Detieia Vehicle Layout Software and Avionics $4 750 000 $250 000 S0 S0 2 500 000 $0 S0 cn S0 $2 000 000 $2 500 000 $2 500 000 $2500 000 $2 500 000 $1125 000 4 1 875 000 SC SC 15 000 000,00 me Engine & Payload Assembly & Inteeratio tA 687 500 $4 910 710 $4 687 500 so SA A6A 290 S4 910 710 $1 339 290 co 25 000 000.00 $0 SC en S0 $0 $2 500 000 5 000 000 $2 500 000 $0 S0 10 000 000,00 $0 $2 500 000 $5 000 000 500 000,00 9IMR ESERVE $10.000 000 10 MB $S 000 000 TOTAL QTR $4 750 000 $13 255 960 $7 187 500 $3 839 290 $3 625 000 10 $11 062 500 $11 994 040 S9 285 710 $5 000 000 $5 000 000 sn 80 000 000.00 BAC CUM TOTAL () 54 750 000 $18 005 960 $41 062 500 $50 348 210 $57535 710 $61 375 000 $65000 000 $70 000 000 $75 000 000 $80000 000 90 000 000,00 TAB 11 $29 068 460 $80 000 000 12 BAC a034 2013 2016 2022 Year 2018 2019 2021 2012 2028 2011 2014 2023 Requirenents ehkle Lavout ks. Engine& Payleak Assembly and intes 10 Totel Drt Cast (SM Fead Cast vrible Cast SM Rvenuas (SM) Proft/Los 17 Ta __ NPV 21 Usits Preduced 30 30 30 30 30 30 Sat Caunt 24 Year 25 Dcoue Facten Dkcount Re $300 $300 S300 $3,00 $3,00 300 $300 $3,00 $3,00 $3,00 $3,00 $3,00 $3,00 28 Tes10%) 29 e Ra sepa sqp0 s0pa sn on sn on sn on sn on sn on sn on s0,00 s0.00 30 Py e Cavts sopa sapa sog0 so,00 sa.00 A B C D E F G H J K 1Unit 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 9 .. 13 17 14 13 17 11 18 17 - 20 21 20 22 - 14 25 2 26 25 29 28 30 29 30 32 fixed cost so.00 so,00 $0,00 s0,00 so,00 so,00 33 Variable Co t vea $0,00 $0,00 $0,00 $0,00 34 36 In(numerator) 0,045757491 0,9 37 In(2) 0,301029996 38 power 0.152003093 NmS6789