MMC

This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.

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February 26, 2017 at 10:51 am #374307
ahsan
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please explain this… the 4 year sales period starts after 24 months from now.. which means in year 0 and year 1 there are cash out flows of 7m and in year 2 the sales should start and also the outflow of 35m but in the answer the outflow is in year 2 but sales are starting from year 3
February 26, 2017 at 2:46 pm #374343
John Moffat
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If we first start selling in 2 years time, then the first years sales revenue will be in the 3rd year (and since we assume cash flows occur at the ends of year, the first revenue will be at time 3).
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