The Xbox 360 reportedly cost Microsoft $130 more to make per unit than what they sold it for. Clearly, the Xbox 360 was a negative NPV project for Microsoft because the costs are greater than the revenue in every period. So why would Microsoft invest in a negative NPV project?

	A.	Bill Gates never took Finance 301
	B.	Microsoft added the future positive cash flows (synergies) that resulted from the sale of controllers, video games, and online memberships into their NPV calculation. The total project including synergies was expected to produce a positive Net Present Value
	C.	Microsoft should not include externality costs in their calculation of NPV and simply made an error