In MS-Excel 2007, NPV(rate, value1, [value 2], ... ) is a financial function that returns

Question

Options: (A) the net present value of an investment based on discount rate and series of future payments and income | (B) the number of periods for an investment based on periodic, constant payments and constant interest rate | (C) the future value of an investment based on periodic, constant payments and constant interest rate | (D) the future value of an initial principal after applying a series of compound interest rates

ExamRobot · Accepted Answer

Correct answer: (A) the net present value of an investment based on discount rate and series of future payments and income. Explanation: In MS-Excel, the NPV (Net Present Value) function calculates the net value of an investment by using a discount rate and a series of future cash flows. The rate represents the discount rate for one period, while value1, value2, ... represent payments (negative values) and income (positive values) occurring at the end of each period. Option B describes the NPER function, which calculates the number of periods for an investment.Option C describes the FV function, which calculates the future value of an investment with constant payments.Option D describes the FVSCHEDULE function, which calculates the future value of an initial principal after applying a series of compound interest rates.

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In MS-Excel 2007, NPV(rate, value1, [value 2], ... ) is a financial function that returns

Explanation

SIMILAR QUESTIONS

The difference between the compound interest and the simple interest for 2 years on a sum of money is Rs. 60. If the simple interest for 2 years is Rs. 1440, what is the rate of interest ?

The value of money varies :

The percentage by which the money the borrower pays back exceeds the money that was borrowed is called as