Question: Net Present Value Calculations: Assume that your total development costs (expenditures) are $1,000,000 per month for six months beginning at the end of month 1
Net Present Value Calculations: Assume that your total development costs (expenditures) are $1,000,000 per month for six months beginning at the end of month 1 through the end of month 6. Assume that your sales revenues of units sold begin at the end of month 7 and continue through the end of month 12 in the dollar amount of $1,200,000 per month. Calculate the NPV of this project assuming a financing discount rate of 2%, and a revenue discount rate of 8%.
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