Question: Now assuming planning or performance materiality at Morris Mining is $600,000, answer the following questions. (a) How sensitive is the fair value estimate to changes

Now assuming planning or performance materiality at Morris Mining is $600,000, answer the following questions.
(a) How sensitive is the fair value estimate to changes in the How much would the estimate have to change for it to have a material impact on the financial statements?
(b) How sensitive is the fair value estimate to changes in the estimated growth rates? How much would the estimated growth percentages have to change to have a material impact on the fair value estimate? Do rate changes in early years or later years have a larger impact? Why?

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