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

Ask the Tutor ACCA AFM

Sensivity

NNoah5y ago
Sir how do we find out see Sensitivy of a project to changes in capital expenditure which will attract TAD over 5years? Can you explain in as much detail as poivle... I have my exam in few hours
John MoffatJohn MoffatTutor5y ago#1
As always in sensitivity calculations, you divide the NPV by the PV of the flows that will change. In this case the flows that will change are the initial expenditure and the tax savings resulting from the associated capital allowances.
Sign in to reply to this topic.