Q17-MMC from BPP Revision Kit

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

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August 19, 2021 at 10:28 am #632081
dilnoza90
Participant
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Dear Sir,

I am a bit confused regarding not including $14m (7m from Y0 and 7m from Y1) in “Pe” when calculating “delay option”. Why only 35m of investment included?

Thanks
August 19, 2021 at 3:14 pm #632155
John Moffat
Keymaster
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That $14M is being paid whatever happens, for the development.

The option is as to whether or not to delay the decision to produce and market the game for 2 years.
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