Compute the annual cost to the american tax payers

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Reference no: EM131963762

NASA recently announced that their Orion Multi-Purpose Crew Vehicle (MPCV) spacecraft is ready for its first test flight in 2019. The cost of the Orion for the test flight will be $22.5 Million in 2019. The first manned mission for the Orion is scheduled for 2025 and its cost is estimated to be $18.75 Million. Beginning in 2031 the Orion will used yearly to transport astronauts from earth to the International Space Station and from the station back to earth once a mission is completed. The operating and maintenance cost of the Orion will be $925,000 in 2031 with costs expected to increase by 4% per year until the Orion spacecraft is retired. The spacecraft is expected to be overhauled at a cost of $8.5 Million in 2035. The Orion is expected to be retired in 2050. The estimated salvage value of the Orion is expected to be $3.25 Million. NASA currently uses a MARR of 8% per year on these types of projects. Compute the annual cost to the American tax payers to fund this project over the life of the spacecraft (2017–2050). Complete all calculations to the nearest dollar.

Reference no: EM131963762

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