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PTA Vs Point of Zero profit
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...