Multiple Choice Question 1. In Excel, the 2 lump sum functions within time value of money functions are, Group of answer choices:

NPER and PV

PV and FV

FV and PMT

PV and PMT

2. In Excel, NPV(0.1,100,250,275,325) maps to what math?

Group of answer choices

FV = 100/(1.1)^0 + 250/(1.1)^1 + 275/(1.1)^2 + 325/(1.1)^3

PV = 100/(1.1)^0 + 250/(1.1)^1 + 275/(1.1)^2 + 325/(1.1)^3

FV = 100/(1.1)^1 + 250/(1.1)^2 + 275/(1.1)^3 + 325/(1.1)^4

PV = 100/(1.1)^1 + 250/(1.1)^2 + 275/(1.1)^3 + 325/(1.1)^4

3.

0	1	2	3	4	5
		100	100	100	100

Suppose we want to value the above cash flow stream as an annuity due, and we wanted the Present Value (PV),

1) The PV function in Excel would be written as: _______.

2) The PV would be as of t = ____.

Your required return is 10%.

Group of answer choices

=PV(0.1,4,100,0,1) ; t = 2

=PV(0.1,4,100,0,0) ; t = 2

=PV(0.1,4,0,100,1) ; t = 2

=PV(0.1,5,100,0,1) ; t = 1

4.

0	1	2	3	4	5	6	7	8
		75	50	125	85

Assume the required return is 5%.

If we used the NPV function in Excel to obtain the PV of the above equation, and wrote the function as:

=NPV(0.05,75,50,125,85)

The PV would be as of what time period?

Group of answer choices

t = 3

t = 1

t = 0

t = 2

5.

If an investor discounts cash flows at their required return, the PV can be called _________.

Group of answer choices

a Fair future value

a Market price

a Market future value

a Fair price