Determine the current annual lcc at six percent per year

Assignment Help Cost Accounting
Reference no: EM13881716

A manufacturing software engineer at a major aerospace corporation has been assigned the management responsibility of a project to design, build, test, and implement AREMSS, a new- generation automated scheduling system for routine and expedited maintenance. Reports on the disposition of each service will also be entered by fi eld personnel, then fi led and archived by the system. The initial application will be on existing Air Force in-fl ight refueling aircraft. The system is expected to be widely used over time for other aircraft maintenance scheduling. Once it is fully implemented, enhancements will have to be made, but the system is expected to serve as a worldwide scheduler for up to 15,000 separate aircraft. The engineer, who must make a presentation next week of the best estimates of costs over a 20-year life period, has decided to use the life-cycle cost approach of cost estimations. Use the following information to determine the current annual LCC at 6% per year for the AREMSS scheduling system.

 

Cost In Year ($ millions)

Cost Category

1

2

3

4

5

6 on

10

18

Field study

0.5

 

 

 

 

 

 

 

Design of system

2.1

1.2

0.5

 

 

 

 

 

Software design

 

0.6

0.9

 

 

 

 

 

Hardware purchases

 

 

5.1

 

 

 

 

 

Beta testing

 

0.1

0.2

 

 

 

 

 

Users manual development

 

0.1

0.1

0.2

0.2

0.06

 

 

System Implementation

 

 

 

1.3

0.7

 

 

 

Field hardware

 

 

0.4

6.0

2.9

 

 

 

Training trainers

 

 

0.3

2.5

2.5

0.7

 

 

Software upgrades

 

 

 

 

 

0.6

3.0

3.7

Reference no: EM13881716

Questions Cloud

How accurately can its position be measured : 1. The energy of a 2.00 keV electron is known to within ±3.00%. How accurately can its position be measured?2. The work function of a material is 3.5 eV. If the material is the illuminated with monochromatic light (l = 300 nm)
Outline the clearing process with a credit card transaction : What different sources of revenue are available from credit card lending? Outline the clearing process with a credit card transaction. What is the biggest risk in credit card loans?
In a young''s double-slit experiment : In a Young's double-slit experiment, a set of parallel slits with a separation of0.102mm is illuminated by light having a wavelength of565nm and the interference pattern observed on a screen3.50m from the slits.
Calculate amortization of the patent : 1.On September 30, 2011, Leeds LTD. acquired a patent in conjunction with the purchase of another company.
Determine the current annual lcc at six percent per year : Use the following information to determine the current annual LCC at 6% per year for the AREMSS scheduling system.
A system consisting of two particles, m1 and m2 : A system consisting of two particles, m1 and m2, with momenta at time t1, p1 and p2, respectively. At time t2, m1 has momentum p1 + Δp, and m2 has momentum p2 - Δp. Which of the following statements will always be true for this scenario?
Find the supremum and infimum : Find the supremum (least upper bound), infimum (greatest lower bound), maximum and minimum of the following sets, if they exist and find the real numbers x that satisfy the given conditions.
Information is maintained by a us government agency : Based on what you have learned about plate tectonics, what hypothesis can you present about why earthquakes happen where they do?Why do you think information is maintained by a US government agency?Why do you think the USGS database is useful?
A lead vat is 17 m long at room temperature : 1. A lead vat is 17 m long at room temperature (20°C). How much longer is it when it contains boiling water at 1 atm pressure?   ??? m 2. An aluminum wing on a passenger jet is 33 m long when its temperature is 26°C. At what temperature would the win..

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd