- This topic has 3 replies, 2 voices, and was last updated 3 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Hello Sir, in this question for sensitivity analysis, we consider flows after tax..for revenue. Will the case be same for expenses also?
As we will make a benefit if expense increase?Yes. You take the NPV as a % of the PV of the flows that change.
So just as in this question we take 75% of the revenue because a change in revenue will change the tax payable by 25% of the change, you would do exactly the same if you had been asked for the sensitivity of an expense 🙂
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Fernhurst’ is closed to new replies.