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MMC(6/11)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › MMC(6/11)

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • February 26, 2017 at 3:11 pm #374357
    alpha2006
    Participant
    • Topics: 19
    • Replies: 18
    • ☆

    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 ?…

    February 26, 2017 at 3:22 pm #374363
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    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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  • The topic ‘MMC(6/11)’ is closed to new replies.

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