Calculate the npv discounted back to the beginning of year

Reference no: EM133715818

Question: Modify Acron's model so that development lasts for an extra year. Specifically, assume that development costs of $7.2 million and $2.1 million are incurred at the beginnings of years 1 and 2, and then the sales in the current model occur one year later, that is, from year 2 until year 21. Again, calculate the NPV discountedback to the beginning of year 1, and perform the same sensitivity analyses. Comment on the effects of this change in timing.

Please provide excel formulas to how you get the results.

Reference no: EM133715818

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