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OpenTuition | ACCA | CIMA
Free ACCA and CIMA on line courses | Free ACCA, CIMA, FIA Notes, Lectures, Tests and Forums
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?
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.
Where are you talking about -notes? Lectures? Where?
Around 7:32 on the lecture under the 10% factor it shows as 3.17, 3.17 and then 0.683
Many thanks
Hello any update on this please? just need to know how this was worked out
The example is from P159 of the notes where 10% is given as the discount rate to use.
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.
Yes.
Hi,
This may just be a refresher, but how do you work out the 10% factor?