E-study | Created: 01/01/2016

Mission Capacity Achieved (Readiness) & Life Cycle Cost Analyses for Fighter Aircraft F-XX Fleet

Learning objectives for this case exercise are: 

1. To provide the students with a decision support tool to support the discussion of trade-offs between readiness/mission capacity achieved (MCA) and LCC when making large-scale capacity investment decisions in the public sector, 

2. To develop and support a proposal for cost reduction or mission capacity improvement with quantitative analysis, 

3. To understand the sensitivity of capital investment decisions to the capital discount rate selected when computing the net present value (NPV) of the LCC, 

4. To understand the trade-off between cost risk (probability that the LCC will exceed a certain budgeted threshold value) and readiness risk (probability that MCA will fall below a mission-planning threshold). 


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