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BRILLIANT’S Analysis of Risk and Uncertainty in Investment Decisions 469
Y-axis
PV ( )`
PV of Revenue
PV of Cost
Financial
Breakeven
X-axis
Number of units
Accounting break-even point and financial AH$mC§qQ>J ~«oH$-B©dZ nm°B§Q> Am¡a ’$m¶ZopÝe¶b ~«oH$-
break-even point calculation: B©dZ nm°B§Q> H$s JUZm…
Fixed Cost + Depreciation
Accounting break-even point =
Contribution Margin Ratio
Variable Cost
Where contribution margin ratio = 1
Sales
Similarly, financial break-even point Bgr àH$ma, ’$m¶ZopÝe¶b ~«oH$-B©dZ nm°B§Q> V~ hmoVm
occurs when: h¡, O~…
PV (Cashflows) = Investment
PV (Cashflows) = PVAF[DR% for n years]× CFAT
Where Cash Inflows are calculated as Ohm§ H¡$e BÝâbmo H$s JUZm {ZåZ àH$ma go H$s
follows: OmVr h¡…
Particulars Amount (`)
Contribution xxx
Less : Fixed Cost xxx
Less : Depreciation xxx
Profit Before Tax xxx
Less : Tax xxx
Profit After Tax xxx
Add : Depreciation xxx
Cash flow after tax (CFAT) xxx
Q.54. What do you mean by simulation analysis? Discuss the procedure for simulation analysis
under Monte Carlo Method.
{g‘wboeZ EZm{b{gg go AmnH$m ³¶m Ame¶ h¡? ‘m|Q>o H$mbm] ‘oWS> Ho$ VhV {g‘wboeZ EZm{b{gg H$aZo H$s
àmogog na MMm© H$s{OE&
