I am creating MVC music store application by reading the PDF, in that on page 22 there is a method shown to add view but when I right clicked on it I am getting the below screen:
[Why I am not getting the View Engine Drop Down?]

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Razor doesn’t work in ASP.NET MVC 2 that’s why you are not provided with this choice. You could use Visual Studio 2010 with ASP.NET MVC 3 installed. Only in ASP.NET MVC 3 projects you are provided with this choice.