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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Sensitivity analysis
Sir, i would like to know how incorporate tax effect when calculating sensitivity analysis on sales volume?
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%)
understood
Thank u very much
You are welcome 🙂
