Question: What am I doing wrong? Modify Acron's model so that development lasts for an extra year. Specifically, assume that development costs of $7.2 million and

What am I doing wrong?

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 discounted

back to the beginning of year 1, and perform the same

sensitivity analyses. Comment on the effects of this

change in timing.

What am I doing wrong? Modify Acron's model so that development lasts

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