Question: Create a new thread and answer the questions listed below. Make sure you answer all questions in a single thread. Answer the questions in the

Create a new thread and answer the questions listed below. Make sure you answer all questions in a single thread. Answer the questions in the sequence they are asked. Once you post your first thread, you will be able to see the answers of every other student. So, from an evaluation perspective, it does not make sense if you look at the answers and post again. Only your first post will be used for grading purposes. You should not send any files to the instructors regarding this. Neither should you upload any file to answer these questions. Questions should be answered as if you are trying to use Excel to answer these. If you use calculators to solve these and just put the answers, you will get no points for that question. Show detailed calculations for numerical questions.
1. What is the present value factor for 4 years if the interest rate is 7.9%? Show how you found the value.
2. What should be input for the Excel function PV if you are trying to find the present value of $100 coming in 5-year when the interest rate is 10%?
3. What would be the payment for a 5-year 10,000 loan if the interest rate is 10% per year and you make monthly payments? Describe how you found the value.
4. What is the advantage of the NPV function over the PV function? How do you deal with initial cash flow (cash flow at time 0) for the NPV function in Excel?
5. What can you do to check if there are multiple IRRs for a project in Excel?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!