The calculation of this % change in selling price required for investment to have a zero NPV is really confusing me because the way it was calculated for Fernhurst co (sep/Dec 16) is different with this one… Is there any reliable formula to use with this situations if ask. I would really like you to further explain this want too for me..
This is sensitivity analysis, and best will be for you to watch my free Paper F9 lectures on this (because it is revision of Paper F9). You cannot just learn formulae for this.
They are the lectures relating to the chapter in the Paper F9 notes on “Investment appraisal under uncertainty”.
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