Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
October 13, 2020 at 1:42 pm
Dear sir, can sensitivity be negative?If yes, in which case?Thank you.
October 16, 2020 at 1:23 am
Dear sir please check my above question.Thank you
John Moffat says
October 16, 2020 at 8:01 am
Yes it can. Watch my lecture working through example 1 of Chapter 10 of the lecture notes. Did you not watch the lecture before attempting this test?
October 16, 2020 at 4:49 pm
I already watched but for a long time.I already watched again and I understand.Sorry but can I default understand that sensitivity of initial investment will always positive and sensitivity of sales column/contribution will always negative?If so, why in the Q3, sensitivity of sale column is 5.3%, not -5.3%?Thank you.
October 16, 2020 at 5:41 pm
No, you cannot understand that. If a reduction in the variable is needed to result in a zero NPV then the sensitivity is negative. If an increase in the variable is needed to result in a zero MPV then the sensitivity is positive,
November 26, 2022 at 12:23 pm
In the comment belo yos say „ If a reduction in the variable is needed to result in a zero NPV then the sensitivity is negative“. But in the third question, we state that sensitivity is +5.3% even though a reduction of the revenue/contribution is needed to result in a zero NPV. How come? Thanks a lot!
November 27, 2022 at 8:59 am
The choice of answers do not specify whether positive or negative – they are testing just on the % amount.
March 15, 2020 at 12:01 pm
Sir could you please tell me about the minimum acceptable contract price and how to calculate it
March 15, 2020 at 2:20 pm
Which of the test questions are you referring to?
November 27, 2019 at 1:28 pm
in question, 2. is using the joint probability not valid
November 27, 2019 at 2:29 pm
You could certainly use joint probabilities, but it would take a lot longer and the final answer would be the same.
November 24, 2019 at 5:47 am
Thanks for the questions sir. I enjoyed solving them.
November 27, 2019 at 2:23 pm
Thank you for your comment (but do make sure that you have a Revision Kit from one of the ACCA approved publishers because they contain lots more questions for practice) 🙂
August 10, 2016 at 3:54 pm
Why question 1 statement 2 is not correct? The expected net present value is the value expected to occur if an investment project with several possible outcomes is undertaken once.
August 10, 2016 at 6:30 pm
Not at all. The actual NPV depends on the actual returns.
The expected NPV will only occur if the investment is undertaken lots of times – it is the average of all the possible NPV’s.
August 10, 2016 at 9:32 pm
True. I have misunderstood the question. Thanks a lot for your reply
August 11, 2016 at 6:21 am
You are welcome 🙂
June 23, 2016 at 11:08 am
For Q 3 if the sales volume change, doesn’t the sales revenue pv change too?
June 23, 2016 at 5:11 pm
Yes of course. But if the volume changes then the variable costs will change also. So it is the contribution that will change.
(You really should watch my free lectures on this. Our lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well.)
June 23, 2016 at 9:06 pm
I have watched the lecture….just got a little confused there. All clear now. Thanks for a bunch of great lectures-really clear!
June 24, 2016 at 7:41 am
Thank you for the comment 🙂
June 9, 2016 at 4:37 am
Dear sir, correct me if im wrong, for question no 5, we should get -26%, if the NPV is negative, am I correct? Thank you, sir.
June 9, 2016 at 7:49 am
The NPV will only fall if the initial investment is higher by 26%. So the sensitivity is + 26%
You must be logged in to post a comment.