Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Evolutionary Finance

Authors: Bartholomew Frederick Dowling

1st Edition

0230502199, 9780230502192

More Books

Students also viewed these Finance questions

Question

2. What is the meaning and definition of Banking?

Answered: 1 week ago

Question

3.What are the Importance / Role of Bank in Business?

Answered: 1 week ago

Question

Assess various approaches to understanding performance at work

Answered: 1 week ago

Question

Provide a model of performance management

Answered: 1 week ago