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cost sensitivity

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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September 4, 2017 at 8:45 am #405274
Anonymous
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How do wee calculate cost sensitivity if taxes are in arrears?
September 4, 2017 at 11:59 am #405304
John Moffat
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You calculate the PV of whichever cost it is that you want the sensitivity for, and calculate the PV of the tax savings resulting from that cost.
The sensitivity is the NPV expressed as a % of the net of the two PV’s as calculated above.
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