📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    In a spreadsheet like MS Excel, the function used to

    calculate the net present value (NPV) of an investment is:
    A =IRR() Correct Answer Incorrect Answer
    B =NPV() Correct Answer Incorrect Answer
    C =PV() Correct Answer Incorrect Answer
    D =FV() Correct Answer Incorrect Answer
    E =RATE () Correct Answer Incorrect Answer

    Solution

    The =NPV () function in Excel calculates the net present value of an investment by using a discount rate and a series of future cash flows. =IRR () calculates the internal rate of return, =PV () calculates the present value of a single lump sum or annuity, =FV () calculates the future value, and =RATE () calculates the interest rate per period.

    Practice Next
    ask-question