Exam 6: Evaluating the Financial Impact of Loans and Investments

Case 6-1 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 calculates the projected income after taxes in cell C19 using the formula ____.

(Multiple Choice)

4.8/5

(80)

Question 61

The PPMT function calculates the value of the ____ for a specified period.

(Multiple Choice)

4.9/5

(87)

Question 62

The values argument in the IRR function is a list of positive and negative cash flows. _________________________

(True/False)

4.9/5

(78)

Question 63

The formula =PMT(0.03/12,12*3,15000,-2000) includes a ____.

(Multiple Choice)

5.0/5

(84)

Question 64

To apply a range name globally, make sure that Workbook is selected as the ____ box.

(Multiple Choice)

5.0/5

(83)

Question 65

Excel provides a method to automatically calculate the payback period, but it is a somewhat complex process that involves using the ____________________ reference function and calculating a cumulative total.

(Short Answer)

4.8/5

(90)

Question 66

Depreciation is the process by which a company spreads the ____ of an asset over its useful life.

(Multiple Choice)

4.8/5

(81)

Question 67

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

(True/False)

5.0/5

(74)

Question 68

A loan that is completely paid off would have an fv of ____.

(Multiple Choice)

4.9/5

(86)

Question 69

In the SLN function, the _____ argument is the value at the end of depreciation.

(Multiple Choice)

4.8/5

(89)

Question 70

In financial functions, type ____ indicates payments are made at the beginning of each period.

(Multiple Choice)

4.7/5

(79)

Question 71

MATCHING Identify the letter of the choice that best matches the word or phrase. -Adding interest earned each period to the principal for purposes of computing interest for the next period

(Multiple Choice)

4.9/5

(88)

Question 72

When cash is paid out, it is considered ____________________ cash flow.

(Short Answer)

4.8/5

(76)

Question 73

To account for a down payment, adjust the ____ of the loan by subtracting it from the loan amount.

(Multiple Choice)

4.9/5

(68)

Question 74

The rate of return is often referred to as the ____.

(Multiple Choice)

4.8/5

(82)

Question 75

NPV requires that value1, value2, value3, and so on must be equally spaced in time and occur at ____.

(Multiple Choice)

4.8/5

(88)

Question 76

ROI is the ____, excluding the initial investment, divided by the investment value.

(Multiple Choice)

5.0/5

(62)

Question 77

In a PMT function, the ____ argument is the number of compounding periods.

(Multiple Choice)

4.8/5

(90)

Question 78

Range ____________________ must start with a letter, an underscore, or a backslash.

(Short Answer)

4.9/5

(86)

Question 79

Identify the letter of the choice that best matches the arguments in the CUMIPMT function. -Number of periods (nper)

(Multiple Choice)

4.9/5

(75)

Question 80

Showing 61 - 80 of 150

The PPMT function calculates the value of the ____ for a specified period.

The values argument in the IRR function is a list of positive and negative cash flows. _________________________

The formula =PMT(0.03/12,12*3,15000,-2000) includes a ____.

To apply a range name globally, make sure that Workbook is selected as the ____ box.

Excel provides a method to automatically calculate the payback period, but it is a somewhat complex process that involves using the ____________________ reference function and calculating a cumulative total.

Depreciation is the process by which a company spreads the ____ of an asset over its useful life.

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

A loan that is completely paid off would have an fv of ____.

In the SLN function, the _____ argument is the value at the end of depreciation.

In financial functions, type ____ indicates payments are made at the beginning of each period.

MATCHING Identify the letter of the choice that best matches the word or phrase. -Adding interest earned each period to the principal for purposes of computing interest for the next period

When cash is paid out, it is considered ____________________ cash flow.

To account for a down payment, adjust the ____ of the loan by subtracting it from the loan amount.

The rate of return is often referred to as the ____.

NPV requires that value1, value2, value3, and so on must be equally spaced in time and occur at ____.

ROI is the ____, excluding the initial investment, divided by the investment value.

In a PMT function, the ____ argument is the number of compounding periods.

Range ____________________ must start with a letter, an underscore, or a backslash.

Identify the letter of the choice that best matches the arguments in the CUMIPMT function. -Number of periods (nper)

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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