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Sensitivity analysis

MAMr. Aboukar4y ago
Sir, i would like to know how incorporate tax effect when calculating sensitivity analysis on sales volume?
John MoffatJohn MoffatTutor4y ago#1
You take the NPB as a % of the PV of whatever it is that will change. So in the case of sales volume it is the net of tax contribution. (So if tax is 30% then it is the PV of the contribution x 70%)
MAMr. Aboukar4y ago#2
understood Thank u very much
John MoffatJohn MoffatTutor4y ago#3
You are welcome :-)
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