Skip to content
Sign inRegister
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA FM

Sensitivity

MIMuhammad Irfan6y ago
Hi need to ask that in sensitivity analysis question if there is tax involved then do we need to take the after tax PV of all cash flows involved e.g. Revenue, variable cost and fixed cost etc for calculating the sensitivity of these cash flows?
John MoffatJohn MoffatTutor6y ago#1
Yes - because if (for example) the revenue changes then the profit will change by the same amount and therefore the tax will also change.
MIMuhammad Irfan6y ago#2
Thanks got it!
John MoffatJohn MoffatTutor6y ago#3
You are welcome :-)
This topic is locked — no new replies.