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The qs states that mmc will spend $7m at the start of the next 2 yrs.
Does it mean yr1 and yr2(i think it should be this one)
Or yr0 and yr1?Thanks in advance Sir
Time 0 and time 1
(Next year starts now – time 0.
The second year starts in 1 years time – time 1)Then what is this yr if next yr is 0?
Is it ok in the exam to take them as yr1 n yr2 cz i always feel that next yr is yr1For discounting we are not looking at whole years – we are looking at moments in time. The whole point of discounting is to account for the interest in yearly periods.
Time 1 is one year from now, time 2 is 2 years from now, and so on.
So next year starts now (time 0). Next year finishes one year from now (time 1).
The second year starts one year from now (time 1). The second year finishes 2 years from now (time 2).
And so on…
hi Sir,
Why don’t we include the 7 million for develpment in start of each year 1 and 2 as part of Pe?
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