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A study of the cost-effective markets for new technology agricultural aircraftA previously developed data base was used to estimate the regional and total U.S. cost-effective markets for a new technology agricultural aircraft as incorporating features which could result from NASA-sponsored aerial applications research. The results show that the long-term market penetration of a new technology aircraft would be near 3,000 aircraft. This market penetration would be attained in approximately 20 years. Annual sales would be about 200 aircraft after 5 to 6 years of introduction. The net present value of cost savings benefit which this aircraft would yield (measured on an infinite horizon basis) would be about $35 million counted at a 10 percent discount rate and $120 million at a 5 percent discount rate. At both discount rates the present value of cost savings exceeds the present value of research and development (R&D) costs estimated for the development of the technology base needed for the proposed aircraft. These results are quite conservative as they have been derived neglecting future growth in the agricultural aviation industry, which has been averaging about 12 percent per year over the past several years.
Document ID
19800002716
Acquisition Source
Legacy CDMS
Document Type
Contractor Report (CR)
Authors
Hazelrigg, G. A., Jr. (ECON, Inc. Princeton, NJ, United States)
Clyne, F. (ECON, Inc. Princeton, NJ, United States)
Date Acquired
September 4, 2013
Publication Date
September 1, 1979
Subject Category
Economics And Cost Analysis
Report/Patent Number
NASA-CR-159090
Accession Number
80N10962
Funding Number(s)
CONTRACT_GRANT: NASW-2781
Distribution Limits
Public
Copyright
Work of the US Gov. Public Use Permitted.

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