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Hello sir…
I am once again thanking u for the timely responds to my past questions…
Well, am bit confused in calculating the NPV why $35m required for production, distribution n marketing cost brought to year 2 cal because I think it is for cost at start of year 4 ?…They spend 7M at time 0 (the start of the first year) and then another 7M at time 1 (the start of the second year).
The game will be released in 2 years time (and so the first income will be in the 3rd year – time 3).
The 35M is needed at the start of the sales period, and since they start selling in 2 years time then it is needed at time 2.
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