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To determine the procurement cost of this system, we need to calculate the sum of the costs related to procurement. In this case, we need to add the costs of procurement of the prime mission, support equipment, and initial spares.
The procurement cost is calculated as follows:
Procurement cost = Procurement of Prime mission + Procurement of support equipment + Procurement of initial spares
In this case:
Procurement cost = $800 million + $100 million + $100 million
Therefore, the procurement cost of this system is:
Procurement cost = $1,000 million (or $1 billion)
So, the correct answer is (d) 1,000 million.