'How to calculate NPV at base rate of 12%
When at the base rate of q1, we have TP1, FP1, TN1, and FN1. SN1, SP1, and NPV1 then can be drived. For example, NPV1 = TN1 / (TN1 + FN1).
Similarily, when at the base rate of q2, we have TP2, FP2, TN2, FN2, SN2, SP2, and NPV2.
Question: how can we calculate the NPV at base rate of q (q=12%)?
If we use SN1, SP1, and q=12%, we can get one value for the NPV at base rate of 12%. But if we use SN2, SP2, and q=12%,we will get another value for the NPV at base rate of 12%. Out of the two NPV at base rate of 12%, which one should we trust?
Why does the formula of calcualting NPV at base rate of 12% not consider the original base rate (for example q1 or q2) that it is derived from?
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