(Answered) Your program plans to acquire a total of 600 end items

Finance

Your program plans to acquire a total of 600 end items costing $535 million over a five-year period. The first production contract is to be awarded in FY04. The number of items to be procured (not delivered) each year and their estimated cost (in then-year dollars) is shown below:

FY Lot Quantity Total Lot Cost

FY04 50 $ 50 million

FY05 100 $ 95 million

FY06 150 $135 million

FY07 150 $130 million

FY08 150 $125 million

Assuming there is no advance procurement and that this is NOT a multiyear contract, what is the correct amount to include in your budget request for FY04 and FY05 for this contract?

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