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Former U.S. Navy SEAL Erik Prince laid out a plan to mitigate Pentagon spending in Afghanistan and finally quell terrorism there.

President Trump has three options, Prince explained. The U.S. could pull out of the area, which would encourage terrorists, continue the same "insanity," of spending money and getting little result, or start viewing the conflict as a bankruptcy and put more pressure on terrorists

"The president has inherited a very expensive disaster," the founder of the government security company Blackwater USA, now called Academi told "Fox & Friends" on Sunday.

The time has come to treat the lengthy war as a bankruptcy, he said.

Prince stated that the president should consolidate authority, set up rules of engagement, build up U.S. troops in Afghanistan, cut off the Taliban's money sources, and finally take out the terrorists.

The current process is "very splintered," and "the president needs to put one person in charge," Prince said.

Prince added that his plan would save the Pentagon $40 billion.

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