Research and development project scheduled


Your program has a research and development project scheduled to start in January 2004 which is expected to take 40 months to complete. The project is expected to cost a total of $150 million (then-year dollars), with cost expected to be incurred as follows:

FYCost to be incurred
FY04 $ 20 million
FY05 $ 48 million
FY06 $ 50 million
FY07 $ 32 million

What is the correct amount to include in your budget request for FY04 and FY05 for this project?

  • $ 48M for FY04 and $ 50M for FY05
  • $ 20M for FY04 and $130M for FY05
  • $150M for FY04 and $ 0M for FY05
  • $ 20M for FY04 and $ 48M for FY05

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Finance Basics: Research and development project scheduled
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