Question 1

The ____________________ argument is a list of positive and negative cash flows.

Accepted Answer

The answer of The ____________________ argument is a list of...

Question 2

A standard method of detailing a loan transaction is to set up what is known as a(n) ____.

Accepted Answer

A)  amortization table 
B)  mortgage table 
C)  depreciation table 
D)  cash flow table 
A)  amortization table 
B)  mortgage table 
C)  depreciation table 
D)  cash flow table

Question 3

Financial institutions advertise their loan interest rates in what is referred to as an annual loan plan, or ALP.

Accepted Answer

A) True 
 B)False

Question 4

Named ranges can be named and then specified as either a workbook scope or to a specific ____.

Accepted Answer

A)  worksheet 
B)  table 
C)  chart 
D)  file 
A)  worksheet 
B)  table 
C)  chart 
D)  file

Question 5

A bank account would have an fv equal to the ____ plus any accrued interest, plus or minus any payments into or out of the account.

Accepted Answer

A)  pv 
B)  rate 
C)  pmt 
D)  fv 
A)  pv 
B)  rate 
C)  pmt 
D)  fv

Question 6

The IPMT function calculates the value of the interest payment for a specified period. _________________________

Accepted Answer

A) True 
 B)False

Question 7

The depreciation method with the formula =DB(cost,salvage,life,period,[month]) is the ____ method.

Accepted Answer

A)  variable-declining balance 
B)  fixed-declining balance 
C)  sum of the years digits 
D)  double-declining balance 
A)  variable-declining balance 
B)  fixed-declining balance 
C)  sum of the years digits 
D)  double-declining balance

Question 8

Stockholders often look at the ____ as a quick measure of how attractive a company's stock is versus other stocks within the industry.

Accepted Answer

A)  ROI 
B)  NPV 
C)  FV 
D)  ROR 
A)  ROI 
B)  NPV 
C)  FV 
D)  ROR

Question 9

The ____________________ method calculates the rate at which discounted cash flows in and out are equal, essentially where the NPV is $0.

Accepted Answer

IRR
irr
Internal Rat

Question 10

Phil has put together the worksheet above with a 5-year cash flow estimate for his shoe company. He needs to explain the chart to his investors. Please answer the questions below using this figure as a reference.
-Phil also assumes that the actual taxes owed will be rounded to the nearest dollar. Using this information, he enters the formula ____ in cell C18 to calculate the taxes. This is the area indicated by #1 in the figure above.

Accepted Answer

A)  =ROUND(Taxrate*C16,0) 
B)  =-ROUND(Taxrate*C16,0) 
C)  =-ROUND(Taxrate*C16,1) 
D)  =-ROUND(Taxrate*C16,2) 
A)  =ROUND(Taxrate*C16,0) 
B)  =-ROUND(Taxrate*C16,0) 
C)  =-ROUND(Taxrate*C16,1) 
D)  =-ROUND(Taxrate*C16,2)

Question 11

The function =-ROUND(Taxrate*C16,0) will round taxes to the nearest ____.

Accepted Answer

A)  dollar 
B)  dime 
C)  penny 
D)  none of the above 
A)  dollar 
B)  dime 
C)  penny 
D)  none of the above

Question 12

Taxes are calculated based on _____ income, which excludes certain elements that are cash flows and includes other non-cash flow items.

Accepted Answer

A)  regular 
B)  taxable 
C)  standard 
D)  itemized 
A)  regular 
B)  taxable 
C)  standard 
D)  itemized

Question 13

In projects where cash flows are negative at both the beginning and the end of the project life, the results of the NPV and IRR are often ____.

Accepted Answer

A)  similar 
B)  contradictory 
C)  error-generating 
D)  none of the above 
A)  similar 
B)  contradictory 
C)  error-generating 
D)  none of the above

Question 14

The payback period is the time it will take to ____.

Accepted Answer

A)  pay the loan back 
B)  earn sufficient profits so that the loan can be paid back 
C)  depreciate an item 
D)  none of the above 
A)  pay the loan back 
B)  earn sufficient profits so that the loan can be paid back 
C)  depreciate an item 
D)  none of the above

Question 15

If you are calculating payments to a bank (a negative cash flow), your formula requires a positive ____.

Accepted Answer

A)  present value (pv) 
B)  future value (fv) 
C)  present value (pv) and future value (fv) 
D)  any of the above 
A)  present value (pv) 
B)  future value (fv) 
C)  present value (pv) and future value (fv) 
D)  any of the above

Question 16

The ____ is the value of the loan or investment.

Accepted Answer

A)  principal 
B)  interest 
C)  cash flow 
D)  depreciation 
A)  principal 
B)  interest 
C)  cash flow 
D)  depreciation

Question 17

In the IRR function, the guess argument is optional and should not be needed, but can be used if the ____ iterations that are automatically performed by Excel do not result in an accurate value.

Accepted Answer

A)  10 
B)  15 
C)  20 
D)  25 
A)  10 
B)  15 
C)  20 
D)  25

Question 18

Briefly describe each of the following depreciation methods: straight line depreciation, double-declining balance, sum of the years digits, and fixed-declining balance.

Accepted Answer

•Straight line depreciation basically al

Question 19

A(n) ____________________ payment is money required from the borrower toward the purchase of an asset.

Accepted Answer

The answer of A(n) ____________________ payment is money required from...

Question 20

The ____________________ is the sum of the cash flows, excluding the initial investment, divided by the investment value.

Accepted Answer

ROI
roi
return on in

The ____________________ argument is a list of positive and negative cash flows.

A standard method of detailing a loan transaction is to set up what is known as a(n) ____.

Financial institutions advertise their loan interest rates in what is referred to as an annual loan plan, or ALP.

Named ranges can be named and then specified as either a workbook scope or to a specific ____.

A bank account would have an fv equal to the ____ plus any accrued interest, plus or minus any payments into or out of the account.

The IPMT function calculates the value of the interest payment for a specified period. _________________________

The depreciation method with the formula =DB(cost,salvage,life,period,[month]) is the ____ method.

Stockholders often look at the ____ as a quick measure of how attractive a company's stock is versus other stocks within the industry.

The ____________________ method calculates the rate at which discounted cash flows in and out are equal, essentially where the NPV is $0.

The function =-ROUND(Taxrate*C16,0) will round taxes to the nearest ____.

Taxes are calculated based on _____ income, which excludes certain elements that are cash flows and includes other non-cash flow items.

In projects where cash flows are negative at both the beginning and the end of the project life, the results of the NPV and IRR are often ____.

The payback period is the time it will take to ____.

If you are calculating payments to a bank (a negative cash flow), your formula requires a positive ____.

The ____ is the value of the loan or investment.

In the IRR function, the guess argument is optional and should not be needed, but can be used if the ____ iterations that are automatically performed by Excel do not result in an accurate value.

Briefly describe each of the following depreciation methods: straight line depreciation, double-declining balance, sum of the years digits, and fixed-declining balance.

A(n) ____________________ payment is money required from the borrower toward the purchase of an asset.

The ____________________ is the sum of the cash flows, excluding the initial investment, divided by the investment value.

Applying Fundamental Excel Skills and Tools in Problem Solving

Solving Problems with Statistical Analysis Tools

Determining Effective Data Display with Charts

Applying Logic in Decision Making

Retrieving Data for Computation, Analysis, and Reference

Organizing Data for Effective Analysis

Using Data Tables and Excel Scenarios for What-If Analysis

Enhancing Decision Making with Solver

Troubleshooting Workbooks and Automating Excel Applications

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Exam 6: Evaluating the Financial Impact of Loans and Investments

The ____________________ argument is a list of positive and negative cash flows.

A standard method of detailing a loan transaction is to set up what is known as a(n) ____.

Financial institutions advertise their loan interest rates in what is referred to as an annual loan plan, or ALP.

Named ranges can be named and then specified as either a workbook scope or to a specific ____.

A bank account would have an fv equal to the ____ plus any accrued interest, plus or minus any payments into or out of the account.

The IPMT function calculates the value of the interest payment for a specified period. _________________________

The depreciation method with the formula =DB(cost,salvage,life,period,[month]) is the ____ method.

Stockholders often look at the ____ as a quick measure of how attractive a company's stock is versus other stocks within the industry.

The ____________________ method calculates the rate at which discounted cash flows in and out are equal, essentially where the NPV is $0.

The function =-ROUND(Taxrate*C16,0) will round taxes to the nearest ____.

Taxes are calculated based on _____ income, which excludes certain elements that are cash flows and includes other non-cash flow items.

In projects where cash flows are negative at both the beginning and the end of the project life, the results of the NPV and IRR are often ____.

The payback period is the time it will take to ____.

If you are calculating payments to a bank (a negative cash flow), your formula requires a positive ____.

The ____ is the value of the loan or investment.

In the IRR function, the guess argument is optional and should not be needed, but can be used if the ____ iterations that are automatically performed by Excel do not result in an accurate value.

Briefly describe each of the following depreciation methods: straight line depreciation, double-declining balance, sum of the years digits, and fixed-declining balance.

A(n) ____________________ payment is money required from the borrower toward the purchase of an asset.

The ____________________ is the sum of the cash flows, excluding the initial investment, divided by the investment value.

Applying Fundamental Excel Skills and Tools in Problem Solving

Solving Problems with Statistical Analysis Tools

Determining Effective Data Display with Charts

Applying Logic in Decision Making

Retrieving Data for Computation, Analysis, and Reference

Organizing Data for Effective Analysis

Using Data Tables and Excel Scenarios for What-If Analysis

Enhancing Decision Making with Solver

Troubleshooting Workbooks and Automating Excel Applications

Filters