SPS Salvage and Disposal Alternatives

In any event, if it becomes necessary to dispose of SPS satellites, a number of disposal options appear feasible. The cost of disposal is on the order of $100 million. This amount has a present value referenced to the initial operation date of the satellite of about $30 million or only about 0.3 percent of the capital investment cost of the satellite. It is clear from the above analysis that an assumption of zero net salvage and disposal cost for the SPS satellites is conservative. A less conservative assumption, for purposes of comparing SPS to alternative systems, would be to take a net salvage value between 5 and 10 percent of satellite capital investment cost. 1.3 Backup Documentation The remaining sections of this report provide backup documentation to the results shown above. Both in review of the backup documentation and interpretation of the above results, the reader should keep in mind that the analyses and results presented here are based upon long-range projections of space and other activities and thus contain considerable uncertainty.

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