3. Use of the demonstration satellite as a power supply for a laser orbit-to-orbit transportation system. A laser orbit-to-orbit transportation system would derive value through transportation cost savings primarily on the cost of transporting otherwise-needed propellants to LEO. 4. Use of the demonstration satellite as a source of space-based materials. The salvage value of this use derives from transportation costs and material costs which may be foregone by using the basic materials existing in the demonstration satellite. 3.1 Growth to Full-Scale Satellite It is currently envisioned that the demonstration satellite will consist of an energy conversion segment, an interface segment and a power transmission segment. The energy conversion segment will consist of primary and secondary structure, concentrators, solar blankets, switchgear and converters, conductors and insulation, attitude control and information management subystems. The interface segment includes the primary and secondary structure, mechanisms, conductors/in- sulation and slipring brushes. The power transmission segment will be representative of the full-scale satellite antenna to the extent of using identical components. It will include structures, transmitter subarrays, power distribution and conditioning, batteries, insulation and phase control elements. Current plans call for growth of the demonstration satellite into the first full-scale SPS satellite. By growing the demonstration satellite into the first full- scale satellite, certain costs may be foregone (that is, a cost item that would have to be incurred if the demonstration satellite were not available for use, would not be incurred since the demonstration satellite is available for use) whereas others may be incurred. The present value of the net of these costs referenced to the initial operation date of the demonstration satellite, is the salvage value that may be derived from this use of the demonstration satellite. It is assumed throughout the following that the demonstration satellite is in orbit and all associated DDT&E and first unit costs are sunk.
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