Question: Your command wants t o maintain the end - strength o f 1 0 0 mission capable fighter aircraft. There are two options; F -

Your command wants to maintain the end-strength of100 mission capable fighter aircraft. There are two options; F-XX and F-XY. Assuming both aircraft are comparable in terms of capability, which aircraft is more economical? Use the annual discount rates of2%,5%, and 7% and compare NPVsin Year 0 dollars. Assume that the acquisition cost will be paid in Year 0, one year prior to the first year of operation. You may use the LCC template Prob 5NPV tab to perform NPV calculations.
?F-XXAircraftF-XYAircraftEnd-strength100100ExpectedAo.85.82Numberofaircrafttobeacquired??UnitCost$30000000$20000000AnnualOperationsandMaintenanceCostsperaircraft$6000000$6500000ExpectedLife20years20yearsSalvageValueorDisposalCost$0$0
Your command wants t o maintain the end -

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