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the 4 projects given to their 2016 cost equivalent, then average them to estimate what a new program might cost. As an example, the Cobra
the 4 projects given to their 2016 cost equivalent, then average them to estimate
what a new program might cost.
As an example, the Cobra project cost $756 million in 2002, when the inflation cost index was 1.000. If you take that cost divided by 1.000 and set it equal to
an unknown cost divided by the 2016 inflation cost factor for 2016, you will get the equivalent cost of the Cobra program estimated in 2016 dollars.
Do that for each of the 4 programs, and them take an average of the four on an inflation adjusted basis
Word File Edit View Insert Format Font Tools Table Window Help MK 40% G) Sat 11:33 AM a e E Document8 Search in Document Home Format Picture Layout :ir Ru: Normal Spaang Heading 1 Heading 2 Title Subtitle Sutle Empha. O Text Box Shape Picture Themes blem: estimate R&D costs f a NEW PROGRAM in SMFY 2016 Fiscal Inflation Raw Index 1.0000 1.0102 1.0306 1.0595 1.0924 1.1218 1.1488 1.1662 1.1757 1.1990 1.2205 1.2386 1.2571 1.10%| 1.2709 1.2862 Historical Helicopter Program R&D Yea Rate Costs 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0.83% SM FY 512 452 756 245 Chinook 2008 2005 2002 2005 2.02% 2.81% 3.10% 2.70% 2.41% 1.51% 0.81% 1.99% 1.79% 1.49% 1.49% Cobra 10 13 14 2014 17 18 19 20 2015| 2016 1.20% | Print Layout view Sec Pages: 1 ot 1 O of O 116%Step by Step Solution
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