Britain’s decision to delay the purchase of 14 Chinook helicopters to save money will actually cost taxpayers £300 million because they will be more expensive later, an official report has found, amid warnings of a “worrying inability to control costs”.
It’s a $2 billion contract.
If inflation is 10% a year then that’s $600 million off the price for a 3 year delay (you know, -ish-ish). The nominal sum might well rise to try to meet that.
But the idea that delay in spending money in inflationary times adds to the net present cost is an absurdity, isn’t it.