Question 1

When used in the PMT function, the comma in 1,000 is interpreted as ____.

Accepted Answer

A)  the beginning of a new argument 
B)  the end of a new argument 
C)  part of the number 
D)  none of the above 
A)  the beginning of a new argument 
B)  the end of a new argument 
C)  part of the number 
D)  none of the above

Question 2

After the ____ and depreciation have been deducted, taxes can be calculated.

Accepted Answer

A)  interest expense 
B)  assets 
C)  liabilities 
D)  all of the above 
A)  interest expense 
B)  assets 
C)  liabilities 
D)  all of the above

Question 3

What is the correct syntax of the PMT function? Briefly describe each of the arguments associated with this function.

Accepted Answer

Correct syntax: =PMT(rate,nper,pv,[fv],[

Question 4

The syntax of the IRR function is as follows: =IRR(values,____________________).

Accepted Answer

The answer of The syntax of the IRR function is...

Question 5

Identify the letter of the choice that best matches the arguments in the CUMIPMT function.
-Starting period

Accepted Answer

A) #1 
B) #2 
C) #3 
D) #4 
E) #5
F)#6 
A) #1 
B) #2 
C) #3 
D) #4 
E) #5
F)#6

Question 6

The rate per period is the monthly rate divided by the number of periods per year. _________________________

Accepted Answer

A) True 
 B)False

Question 7

____ depreciation basically allocates the value of an asset evenly throughout the life of the asset.

Accepted Answer

A)  Complex 
B)  Compound 
C)  Straight line 
D)  Even 
A)  Complex 
B)  Compound 
C)  Straight line 
D)  Even

Question 8

Identify the letter of the choice that best matches the arguments in the CUMIPMT function.
-Rate per period

Accepted Answer

A) #1 
B) #2 
C) #3 
D) #4 
E) #5
F)#6 
A) #1 
B) #2 
C) #3 
D) #4 
E) #5
F)#6

Question 9

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 10

ROI is the sum of the cash flows, including the initial investment, divided by the investment value.

Accepted Answer

A) True 
 B)False

Question 11

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 12

The fv argument is the value at the end of the financial transaction.

Accepted Answer

A) True 
 B)False

Question 13

Identify the letter of the choice that best matches the arguments in the CUMIPMT function.
-Type

Accepted Answer

A) #1 
B) #2 
C) #3 
D) #4 
E) #5
F)#6 
A) #1 
B) #2 
C) #3 
D) #4 
E) #5
F)#6

Question 14

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 15

A down payment is money required from the lender toward the purchase of an asset.

Accepted Answer

A) True 
 B)False

Question 16

Business analysts must be aware that the ROI does not take into account the time value of ____________________.

Accepted Answer

The answer of Business analysts must be aware that the...

Question 17

Payments that are inflows should be ____________________, and payments that are outflows should be negative.

Accepted Answer

The answer of Payments that are inflows should be ____________________,...

Question 18

$10,000 compounded 1 time at 4% per period is different from $10,000 compounded 4 times at 1% per period; the latter results in a higher value.

Accepted Answer

A) True 
 B)False

Question 19

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.

Accepted Answer

A)  MATCH 
B)  LINK 
C)  CALCULATE 
D)  ISNUMBER 
A)  MATCH 
B)  LINK 
C)  CALCULATE 
D)  ISNUMBER

Question 20

PV solves for the final value, which is the amount in or out at the end of the financial transaction. _________________________

Accepted Answer

A) True 
 B)False

When used in the PMT function, the comma in 1,000 is interpreted as ____.

After the ____ and depreciation have been deducted, taxes can be calculated.

What is the correct syntax of the PMT function? Briefly describe each of the arguments associated with this function.

The syntax of the IRR function is as follows: =IRR(values,____________________).

Identify the letter of the choice that best matches the arguments in the CUMIPMT function. -Starting period

The rate per period is the monthly rate divided by the number of periods per year. _________________________

____ depreciation basically allocates the value of an asset evenly throughout the life of the asset.

Identify the letter of the choice that best matches the arguments in the CUMIPMT function. -Rate per period

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

ROI is the sum of the cash flows, including the initial investment, divided by the investment value.

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

The fv argument is the value at the end of the financial transaction.

Identify the letter of the choice that best matches the arguments in the CUMIPMT function. -Type

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

A down payment is money required from the lender toward the purchase of an asset.

Business analysts must be aware that the ROI does not take into account the time value of ____________________.

Payments that are inflows should be ____________________, and payments that are outflows should be negative.

$10,000 compounded 1 time at 4% per period is different from $10,000 compounded 4 times at 1% per period; the latter results in a higher value.

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.

PV solves for the final value, which is the amount in or out at the end of the financial transaction. _________________________

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

Exam 6: Evaluating the Financial Impact of Loans and Investments

When used in the PMT function, the comma in 1,000 is interpreted as ____.

After the ____ and depreciation have been deducted, taxes can be calculated.

What is the correct syntax of the PMT function? Briefly describe each of the arguments associated with this function.

The syntax of the IRR function is as follows: =IRR(values,____________________).

Identify the letter of the choice that best matches the arguments in the CUMIPMT function. -Starting period

The rate per period is the monthly rate divided by the number of periods per year. _________________________

____ depreciation basically allocates the value of an asset evenly throughout the life of the asset.

Identify the letter of the choice that best matches the arguments in the CUMIPMT function. -Rate per period

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

ROI is the sum of the cash flows, including the initial investment, divided by the investment value.

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

The fv argument is the value at the end of the financial transaction.

Identify the letter of the choice that best matches the arguments in the CUMIPMT function. -Type

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

A down payment is money required from the lender toward the purchase of an asset.

Business analysts must be aware that the ROI does not take into account the time value of ____________________.

Payments that are inflows should be ____________________, and payments that are outflows should be negative.

$10,000 compounded 1 time at 4% per period is different from $10,000 compounded 4 times at 1% per period; the latter results in a higher value.

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.

PV solves for the final value, which is the amount in or out at the end of the financial transaction. _________________________

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