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Sensitivity analysis

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Sensitivity analysis

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • September 22, 2022 at 11:02 am #666978
    abokor
    Participant
    • Topics: 82
    • Replies: 114
    • ☆☆

    Sir, i would like to know how incorporate tax effect when calculating sensitivity analysis on sales volume?

    September 22, 2022 at 5:14 pm #667012
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54829
    • ☆☆☆☆☆

    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%)

    September 22, 2022 at 7:28 pm #667027
    abokor
    Participant
    • Topics: 82
    • Replies: 114
    • ☆☆

    understood

    Thank u very much

    September 23, 2022 at 7:13 am #667056
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54829
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Sensitivity analysis’ is closed to new replies.

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