Fernhurst Co (SD 2016) – modified – sensitivity to selling price (foreign subs)

Hello John,

I understand the approach and explanation you provided in the following (already closed) forum topic relevant to Fernhurst (SD 2016), requirement b) = sensitivity analysis:
https://opentuition.com/topic/fernhurst-2/

Could you please help me to understand the logic how this would work if it is part of a scenario with a foreign subsidiary i.e. assuming we are looking for sensitivity of the NPV to a change in the selling price where the sales revenue is coming from the country where we have the foreign subsidiary. The tax in the foreign country is 20% and tax in the home country is 30% + we have the DTT in place.

Would I just simply use 70% of the revenue for such calculation assuming the home country tax is the total relevant tax applicable in this very case? Technically, it may be paid as 20% tax in the country of origin and 10% additional tax per DTT on remittance, but this should not change the logic I presume.

Thank you,
Martin