Question: A solar-powered personal aircraft with VTOL capability has been under development for the past 30 years by a group of engineers and physicists. SPPAV, as the plane will be termed, is expected to be available for its final test flight in exactly 3 years from now. Over the previous 30 years, a total of $100 million has been spent in its development. Assuming the $100 million was spent in an equal amount each year, and assuming an interest rate of 10%, determine the following:
(a) The value of the total investment now, after the 30 years.
(b) The value of the total investment at the expected time of the final test flight in three more years, assuming the same amount is spent for each of the next three years.
(c) The value of the total investment at the expected time of the final test flight in three more years, assuming that twice the amount is spent for each of the next 3 years than that for the previous 30 years.