December 2011Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › December 2011This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts December 8, 2015 at 3:50 pm #289057 farhana001MemberTopics: 34Replies: 45☆☆Question 1 c (ii) isn’t the sensitivity margin of discount rate = initial investment / annuity? I am confused with the calculation December 8, 2015 at 4:43 pm #289098 John MoffatKeymasterTopics: 57Replies: 54500☆☆☆☆☆I have absolutely no idea where you got that idea from!For the interest rate it is the % change in the existing cost of capital to end up with the IRR.The interest rate is 11%, the IRR is 16%. Therefore it can change by 5 percentage points, which is 5/11 = 45% of the interest rate.I do suggest that you watch the free lectures on sensitivity analysis.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In