Warden co – December 2011

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August 17, 2022 at 4:14 pm #663286
johnbriane
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Dear sir

In this question
I’m quite it difficult to understand the requirement C – ii

I’m not sure how did they cakfukk lol are the sensitivity of the selling price

And how did they get 103000 sir
August 17, 2022 at 5:31 pm #663302
John Moffat
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The sensitivity of the selling price is the NPV as expressed as a % of the PV of the sales revenue after tax. (If you are unsure about the reasoning then look at the Paper FM lectures on sensitivity analysis).

$103,000 is the NPV as calculated in part (a).
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