March 2026 ACCA Exams

Comments & Instant poll

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2026 exams.
Get your discount code >>

investment appraisal

This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
December 3, 2014 at 10:28 am #216731
sonia
Member
- Topics: 13
- Replies: 28
a cash has required investm,ent 25000 expected generate a cashflow 8000 for each year for 5 year the cost of capital 10%
WHAT IS SENSITIVITY CHANGE OF CASHFLW?
December 3, 2014 at 11:06 am #216754
John Moffat
Keymaster
- Topics: 57
- Replies: 54831
The PV of 8,000 a year for 5 years at 10% is 8,000 x 3.791 = 30,328
The NPV is 30,328 – 25,000 = 5,328
So the sensitivity = 5328/30328 = – 17.57% (negative, because we only worried if the inflow falls)
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.