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Sir, in this qn, part b, where we compute the sensitivity of the project to a $1m change in the CAPEX, what exactly is the unrecovered allowance at year 6, which amounts to 0.027? How do I calculate this?
I am sorry, Chandhini, but I have the BPP question (and answer) in front of me and there is no part (b) and nor are there any calculations of sensitivity.
I can only think that your Revision Kit must be a newer edition.
The only “Your Company” in my edition is a past exam question from June 1999 (not 2009) and is exactly as was the original exam question, asking to rewrite a guidance manual.
It has no mention of sensitivity and no part (b).
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