Hi,
After reading wonderful PTA concepts at deepfried blog, I was thinking about the following..please share your thoughts.
How do we derive the point of zero profit, when we talk about point of total assumption in FPIF contracts ? What are the drivers for buyer to decide buyer share ratio and ceiling price, in actual practice ? Are there any lower and upper bounds for PTA in terms of ceiling price, target price, target cost and buyer share ratio ? I spent some time on these aspects and mulling over the answers...
Thanks, Chary