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John Moffat.
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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Q17-MMC from BPP Revision Kit
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
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.