Exam 9: Perform the Analysis: Prescriptive Analytics

What is the Excel formula to compute the net present value for an initial $53,000 investment and cash inflows of $17,000 per year for years 1 through 4 with a 10% cost of capital?

What is the internal rate of return for a $55,000 investment (−$55,000 in year zero) and cash inflows of $20,000 per year for years 1 through 4?

__________ analytics identifies the best possible option given constraints or changing conditions.

All other things being equal, we would not choose the investment with the __________ accounting rate of return.

In make-or-buy analysis, which of the following is not a key input to the decision?

The technique used in management accounting to determine the change in profit associated with the cost or benefit of the next (or the marginal) unit is called __________.

What is the net present value for a $33,000 investment (−33,000 at year zero) and cash inflows of $10,000 per year for years 1 through 4, using a 4% discount rate?

Prescriptive analytics may use __________ as a tool to help perform the analysis.

Using three different possible interest rates to evaluate their possible impact on the outcomes of investments is called sensitivity analysis.

An example of goal-seek analysis is determining __________.

Calculate the annual car payment for a car loan of $20,000 at 5% interest rate over five years.

The decision of which major expenditures and projects a company will invest in is traditionally called __________.

Determining the best course of action under nine possible tax rate scenarios is an example of:

What is the Excel formula to compute the internal rate of return for a $32,000 investment and cash inflows of $10,000 per year for years 1 through 4?

Which of the following incorporates the time value of money in its analysis?

An objective of financial accounting is to help investors and other users in assessing the amounts, __________, and __________of future cash cash-flows.

Marginal analysis __________ sunk costs (past spending that cannot be recovered).

Whether the investment returns arrive in year 1 versus year 2 will make a difference on the calculation of internal rate of return.

Prescriptive analytics will often build upon descriptive, diagnostic, or predictive analytics.

All of the following are types of prescriptive analytics except: