September/December 2019 – Sample Questions – Question 1

Dear Sir,
With reference to Q1, base case NPV of Alpha, it is mentioned in question that sales and expenses are going to start in 6 months time, are we not supposed to adjust discount factor to 6 months for 1st cashflow and then 18 months, 30 months and so on? In the answer, they have just used annual 10% discount rate.

Regards