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your business q21

This topic has 2 replies, 2 voices, and was last updated 8 years ago by John Moffat.

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January 31, 2017 at 9:00 am #370338
shilpamary
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bpp revision kit ,q21:your business. Will you mind explaining how that sensitivity worked out.I didn’t understand much but i think they have asked how would npv may be sensitive /differ with 1m change in investment…can u help me with this part!!?
January 31, 2017 at 5:01 pm #370400
shilpamary
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Oh i didn’t get answer for this :(/
February 1, 2017 at 7:54 am #370456
John Moffat
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Sorry – I thought I had answered.
You need to calculate what the effect will be of an extra $1M capital investment (which will of course also affect the capital allowance savings).
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