What is the correct amount to include in your budget request

Reference no: EM131962900

Question: The COUGAR program plans to acquire a total of 600 end items costing $720 million over a five-year period. The first production lot is planned for FY 2016. 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 FY 2016 75 $120 million FY 2017 115 $160 million FY 2018 150 $180 million FY 2019 150 $150 million FY 2020 110 $110 million The program office estimates that 10% of each lot's total cost must be requested as advance procurement for components one year in advance for each lot to protect the production schedule. This use of advance procurement has been approved in the program's acquisition strategy. What is the correct amount to include in your budget request for FY 2016 for this program?

A. $120 million for the system line item and $0 million for the advance procurement line item

B. $108 million for the system line item and $16 million for the advance procurement line item

C. $120 million for the system line item and $16 million for the advance procurement line item

D. $108 million for the system line item and $12 million for the advance procurement line item

Reference no: EM131962900

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