Financial Management

The Space Transportation Program Office has tasked you with estimating production costs for a new solid propellant rocket engine to be used on the International Launch Vehicle (ILV).

Prior to collecting historical data, meetings with propulsion engineers were held.  The results of the identification phase were encouraging.  The experts agree that the primary driver of solid propellant rocket engine production costs is Power.  For propulsion systems, Power can be measured in several ways, such as Average Thrust, Burn Time and Propellant Weight. During the specification phase, the experts all agreed that as power, burn time, and propellant weight increased, cost would also increase.

Data on twelve analogous rocket engines were gathered.  The cost data is normalized to the cost at unit 100 in FY98$. The historical database is as follows: