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December 28, 2020 at 10:48 am
The lecturer worked out the sensitivity analysis in percentages. I did it in amounts. The question doesn’t specify which is needed so I would be correct to show my answer in values?
Ken Garrett says
December 28, 2020 at 2:04 pm
It could be. However, I think that the value has to be related in some way to the proportional or percentage change in the original assumption. A value of 5 is very different if you are talking about the change in sales where the original assumption was 10,000 (V sensitive as you could easily be wrong by 5 in 10,000) or you are talking about a change in cost where the original assumption was 10 ie getting costs wrong by 50% might be thought of as unlikely.
June 24, 2020 at 7:21 pm
Where are you talking about -notes? Lectures? Where?
June 24, 2020 at 8:37 pm
Around 7:32 on the lecture under the 10% factor it shows as 3.17, 3.17 and then 0.683
June 25, 2020 at 4:18 pm
Hello any update on this please? just need to know how this was worked out
June 26, 2020 at 6:16 am
The example is from P159 of the notes where 10% is given as the discount rate to use.
July 4, 2020 at 6:28 am
From years 1-4 Sales and MC are having SAME CFs for EACH of the 4 years,hence, we will discount these using annuity factor for 4 years at 10% which is 3.17.
July 4, 2020 at 3:08 pm
June 24, 2020 at 6:51 pm
This may just be a refresher, but how do you work out the 10% factor?
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