Conclusions The cost sensitivity of the NASA/DOE SPS design was examined. The recurring costs for the 120 satellite system constitute more than 96% of the total project cost. The most significant segment of the recurring cost are the spacecraft, the ground station and space transportation. The principle cost drivers in the spacecraft is the energy conversion and power transmission systems. The ground station cost drivers are the rectenna structure and power collection systems. The principle transportation cost driver in the NASA/DOE design is the heavy lift launch vehicle. A significant cost reduction in all these systems would be required to reduce the overall project cost by a large amount. 11.2.1 Financial Sources Overview “Engineers and physicists tell us that it is through celestial mechanisms and physics that the earth revolves around the sun and rotates on the axis, but we all know that it is really money that MAKES THE WORLD GO ROUND”...Dr. Donald Bunker, ISU '92 As Mr. Bunker told us, whatever you decide to do, it is with the purchasing power of money that you will be able to acheive it. Money is a unit of exchange and a store of value. Unfortunately, a limited amount of money's available in the World. As any industry, the aerospace sector participates to the quest for those scarce dollars, pounds, guilders or rubles in ways to achieve different projects. [Bunker, 92] A few characteristics can be presented to depict the nature of space business: • Huge investment requirements • Market usually undeveloped • Low level of products sold per year • High risk of technical failure • Risk of political interference • No investors (except communications) have as yet received substantial return from their investment, and • Few product have ever made it to the market on cost and/or on schedule [Diamandis, 92] Considering those factors, one can have a good idea of how difficult it is to find funds for the realization of a project related to the space sector. The purpose of this section is to present the different sources of money existing in the world and to explain what type of commitment a company or agency should expect to putforth to obtain those scarce resources. Sources of Funds There are various sources of funding the space project financing, which can be considered available. Capital Market The capital market is principally composed of banks, trust companies, insurance companies, pension funds, venture capital and the general public (private placement & public offering). The purpose to invest varies widely from one investor to another. The purpose of a financial participation in a project can be to vary the degree of diversification of a financial portfolio, to get more security, or for the trill of a great adventure. The characteristics of space projects (described in the introduction of this section) tend to limit capital market investors to senior financial institutions like banks or insurance companies. Of the big market players, three participants can be considered in more detail: financial institutions, venture capital, and the general public. Financial Institutions Banks have to be considered as really conservative lenders. The main goal of the business of commercial banks is to make profits for the shareholders in satisfying the credit needs in the market
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