I'd go with a cost range of $70-86 Mn for a J-20, with a 70% confidence level.
The F-35A cost is $86 Mn (including engine) and has reached a floor.
My best guess is that the J-20 (including engine) costs $70-80 Mn.
However, there is a possibility that the J-20 is almost as expensive as an F-35A
And in another 4 years, the J-20 would drop another $10 Mn, as per the F-35 experience, because the Chinese are at an earlier stage of the production learning curve.
Methodology and all the assumptions below.
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I think the methodology may be correct, but the estimate of the initial construction cost of the J-20 is not.
The research and development costs of the aircraft are generally allocated to the initial demand order quantity or the known total production quantity, or be contracted independently. Then certain calculations are made before the financial costs are amortized. Only when two aircrafts have same R&D model, their unit price can be reasonably compared.
The reason why the F-35 is not suitable as a reference for the J-20 is that F-35 is actually three types of aircrafts that are packaged into the same research and development plan. This results in its development cycle and cost being much higher than that of a single-target air superiority aircraft like J-20.
In addition, according to reports, the maintenance and spare parts logistics of the F-35 are contracted by Lockheed Martin, so that the maintenance and spare parts supply logistics costs after delivery are also allocated to the order price of each aircraft in advance.
A more appropriate reference type should be F-22.