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- Newsgroups: sci.space
- Path: sparky!uunet!hela.iti.org!aws
- From: aws@iti.org (Allen W. Sherzer)
- Subject: Re: Stupid Shut Cost arguements (was Re: Terminal Velocity of DCX?
- Message-ID: <1992Dec23.191306.6705@iti.org>
- Organization: Evil Geniuses for a Better Tomorrow
- References: <9gt204c@rpi.edu> <1992Dec23.132824.14131@iti.org> <STEINLY.92Dec23102952@topaz.ucsc.edu>
- Date: Wed, 23 Dec 1992 19:13:06 GMT
- Lines: 74
-
- In article <STEINLY.92Dec23102952@topaz.ucsc.edu> steinly@topaz.ucsc.edu (Steinn Sigurdsson) writes:
-
- > You left out the $34 billion (in 86 $$) development costs which must
- > be amortized.
-
- >Does this include the cost of the Enterprise?
-
- When Boeing built the first 747 it was a non-flying test aircraft just
- like Enterprise in most important respects. Since Boeing didn't count
- this first 747 as a sunk cost (they would be bankrupt if they did) I
- don't think Enterprise should be considered a sunk cost.
-
- >If so, why is it not a
- >sunk cost as you argue the DC-Y should be?
-
- DC-Y is a proof of concept for a very limited market (SDI deployment). The
- DC-1 will likely be a very different vehicle and will be a new one for all
- practical purposes. That cannot be said for Enterprise.
-
- >Does it include
- >construction of wind tunnels, the (Grumman?) glide simulator and
- >operations thereof?
-
- Since Boeing charges those things to development and passes those on to
- customers, I think NASA should as well for its operational vehicles.
-
- >What about the software development costs for
- >doing a lot of the aerodynamic simulations,
-
- Boeing also writes software for aerodynamic simulations when it developes
- aricraft. The cost of this is included in development and is passed on
- to customers. NASA should as well for its operational vehicles.
-
- Fair enough?
-
- >You've said you want to bill all manned space program costs to the
- >shuttle,
-
- No, that is not what I said. That is what Dennis put into my mouth.
-
- >does that include suit development? If so, what are the DC
- >personnel going to wear for EVA?
-
- Well, I think they should pay their fair share of the development costs
- for whatever suit they use.
-
- >I think you are quite inconsistent in how you assign costs to
- >the DC and Shuttle.
-
- I disagree. However, it is a minor point since if you use the same rules
- (pick any you like) DC comes out far far ahead of Shuttle. In fact, you
- could amortize DC-Y development, DC-X development, and DC-1 development
- and it STILL comes out cheaper than the operational costs of Shuttle
- (~$6,000 per pound for DC vs $10,000 per pound for Shuttle). All three
- efforts cold be funded with the interest you would get by putting Shuttle
- development money in the bank at 5%.
-
- >For instance you explicitly said tank farm
- >operation for LOX and LH2 should not be included, only the marginal
- >cost of loading each DC
-
- No, I have never said that. I think DC will get fuel from the same
- source that airliners get fuel. American Airline doesn't produce its
- own fuel, not do they get it at marginal cost. Instead they buy it
- from suppliers who include the cost of tank farms in the price they
- charge. DC will be no different.
-
- Allen
-
- --
- +---------------------------------------------------------------------------+
- | Allen W. Sherzer | "A great man is one who does nothing but leaves |
- | aws@iti.org | nothing undone" |
- +----------------------122 DAYS TO FIRST FLIGHT OF DCX----------------------+
-