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Calculate annual lcc at an interest rate of seven per year

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Reference no: EM13881695

The Pentagon asked a defense contractor to estimate the life-cycle cost for a proposed light-duty support vehicle. The list of items included the following categories: R&D costs (R&D), nonrecurring investment costs (NRI), recurring upgrade costs (RU), scheduled and unscheduled maintenance costs (Maint), equipment usage costs (Equip), and phaseout_disposal costs (Po_D). Use the cost estimates (shown in $1 million) for the 20-year life cycle to calculate the annual LCC at an interest rate of 7% per year.

Year

R&D

NRI

RU

Maint

Equip

PoD

0

5.5

1.1

 

 

 

 

1

3.5

 

 

 

 

 

2

2.5

 

 

 

 

 

3

0.5

5

1

0.6

1.5

 

4

 

11

3

1.4

3.6

 

5

 

10.5

4.2

1.6

5.3

 

6-10

 

 

$7

2.7

7.8

 

11 on

 

 

2

3.5

8.5

 

18-20

 

 

 

 

 

2.7

2001_Case Flow Diagrams for Problem.png

Reference no: EM13881695

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