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cost sensitivity

((deleted)8y ago
How do wee calculate cost sensitivity if taxes are in arrears?
John MoffatJohn MoffatTutor8y ago#1
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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