Exam 9: Working With Financial Tools and Functions

-The item marked ____________________ in the accompanying figure is the quarterly cash outflow.

Cash flow has nothing to do with who owns the money.

The financial definition of ____________________ is the difference between the present value of future cash flows and the current cost of the initial investment.

Assets such as raw materials a company uses to manufacture cars are considered tangible assets.

With the FV function,if the amount invested each month is -30,000,this represents a positive cash flow._________________________

-The item marked ____________________ in the accompanying figure is the annual interest rate.

Case-Based Critical Thinking Questions Case 9-1 Christian is having a lot of problems with errors in a very complicated spreadsheet that he inherited from a colleague,and he turns to another co-worker,Sebastian,for tips in how to trace errors in the sheet. -Sebastian tells Christian to search all of the error values until he reaches one that lacks something,and that is the source of the error values in the dependent cells.What does that error value lack?

In comparing two investments,a commonly used guideline is to accept the investment with the ____.

To calculate an annual rate,multiply the value returned by the RATE function by the number of payments per year._________________________

To calculate the internal rate of return,use the ____ function with the cost of the initial investment as the first cash flow value in a series.

You can extrapolate a series of values from the Series dialog box._________________________

Cash flow is not concerned with the direction of the money as it moves in and out of the company.

Case-Based Critical Thinking Questions Case 9-1 Christian is having a lot of problems with errors in a very complicated spreadsheet that he inherited from a colleague,and he turns to another co-worker,Sebastian,for tips in how to trace errors in the sheet. -If Christian sees red tracer arrows that means there is an error in the value being received from the precedent cell or passed to the ____ cell.

The fv argument is required in the PMT function.

Excel uses ____ to denote error indicators.

The ____ function returns the sum-of-years' digit depreciation that results in a more accelerated depreciation than straight-line depreciation but less than declining balance depreciation.

A(n)____________________ is also known as a profit and loss statement.

The function DDB is used to calculate a declining balance depreciation._________________________

The possibility that the entire transaction will fail,resulting in a loss of the initial investment is called the chance._________________________

At rates beyond the internal rate of return,the net present value is ____,meaning that the expansion is no longer a good investment compared with the desired rate of return.