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Financial Functions

A higher discount rate means that future dollars are ___________ in comparison to current dollars. discounted more
A positive cash flow, or ____________________, occurs whenever money is flowing into the account. cash inflow
A _______ cash flow occurs when cash is going to the investor regular
A(n) ____ arrow provides a visual clue to the relationship between two cells by pointing from the precedent cell to the dependent cell tracer
A(n) ____ shows how much money a business makes or loses over a specified period of time. income statement
A(n) ____ worksheet projects the company’s expected assets, liabilities, and equity. balance sheet
A(n) ____________________ cash flow occurs whenever money is flowing out of the account. negative
A(n) ____________________ is also known as a profit and loss statement. income statement
A(n) ____________________ provides details about each loan payment, specifying how much of the payment is devoted toward interest and how much toward repaying the principal. amortization schedule
After you select a cell with an error indicator, you can click the Error Alert ____ to display additional information about the possible error and determine if further action is needed button
_________ include equipment, land, and delivery trucks tangible assets
____________ often format all entries as positive values, and then label the columns to indicate the values represent negative values amortization schedules
As you repay a loan, each payment represents a ________ cash flow as you are sending money to the lending institution negative
At higher rates of return, the net present value of the investment goes ______ down
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 negative
Both the NPV and the ______ functions assume the cash flows occur at evenly spaced intervals irr
____ is the symbol Excel uses to easily indicate an error #
The ______________ error message indicates a mistyped function name. #NAME?
These are the red tracer arrows that means there is an error in the value being received from the precedent cell or passed to the ____ cell. dependent
_______ is concerned with the direction of the money as it moves in and out of the company. cash flow
Cash flow is the movement of cash assets ____ an account. into or out of
Excel supports ____ function(s) to calculate depreciation under different assumptions five
Excel uses ____ to denote error indicators. green triangles
_____ ____ is used to calculate the future value of a fund fv
Financial functions format calculated values as currency, with ____ ________ appearing in red font negative cash flow
If the NPER function returns the error value ________ a loan cannot be paid back in any length of time #NUM!
If you are making periodic monthly payments, and the interest is compounded monthly, then the number of periods is in _______ months
If you don’t include an fv value, Excel assumes a future value of ____ 0
If you know the beginning and ending values in a series and the series trend, you can fill in the missing values through ____________________ interpolation
If you plan to invest money for 18 months, the value of the _____ argument in the PMT function is 18 nper
In a(n) ____ trend, the values change by a constant amount. linear
In a(n) ____ trend, values change by a constant percentage and usually appear as a curve growth
In an amortization schedule, use _______ references to refer to the original loan conditions and use absolute references to refer to information about specific payment periods. absolute
In comparing two investments, a commonly used guideline is to accept the investment with the ____. higher NPV and higher IRR
In the function =CUMIPMT(rate, nper, pv, start, end, type), it is ____ that defines whether the payments are made at the beginning or end of each period type
Most Excel financial functions require a particular ____ to the cash flow to return the correct value direction
The ____ function is used in calculating the net present value of a transaction, which is the current value of all the cash inflows and outflows in the investment adjusted by the time value of money. NPV
The PMT value is also known as the ____ payment periodic
The ____ function calculates the amount paid into an investment or loan during each payment period PMT
The ____ function calculates the future value of an investment or loan. fv
The ____ function calculates the interest rate charged or received during each payment period. Rate
The ____ function calculates the number of payment periods in an investment or loan. NPER
The ____ function returns a variable declining depreciation for any specified period using any specified depreciation method. VDB
The ____ function returns the amount of a particular payment that is used to pay the interest on the loan. IPMT
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. SYD
The ____ function takes these arguments: cost, salvage, and life. SLN
The ____ period is a quick method of projecting the value of an investment. Payback
The ____________________ argument specifies whether payments are made at the end of each period or at the beginning. type
The ____________________ function calculates the amount of a loan payment used to pay off the principal of the loan PPMT
The ____________________ function calculates the number of payment periods in an investment or loan. NPER
The ____________________ is the amount of the loan that is still unpaid. Principal
The company’s income after all expenses and taxes have been paid is called the ____. net income
The difference between a company’s sales revenue and the cost of goods sold is the company’s ____. gross profit
The difference between a loan and an investment is based on the direction of the ____________________. cash flow
____________________ is the difference between the present value of future cash flows and the current cost of the initial investment. Net present value
The functions used to work with loans are the same ones you used to work with investments the only difference is the direction of the _______
The list of values in the ______ function must include at least one positive cash flow and one negative cash flow. IRR
The point at which the net present value of an investment equals ____ is the internal rate of return. 0
The possibility that the entire transaction will fail, resulting in a loss of the initial investment is called the _________ risk
The process of allocating the original cost of an investment over the years of use is known as ____. depreciation
To ____ a series, the cells between the first and last cells in the series must be blank interpolate
To calculate a series of values from a starting point without a defined ending point, you have to ____ the values. extrapolate
To calculate a variable deprecation, use the ____ function. VBD
To calculate an ________ multiply the value returned by the RATE function by the number of payments per year annual rate
To calculate the _________ of an asset, you need to know an asset’s original cost and its useful life. depreciation
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. irr
To choose between two or more investments, it’s a good idea to graph the ____ for each investment against different possible rates of return. NPV
n To determine the interest rate needed to reach your savings goal, you can use the ____________________ function. rate
To evaluate a formula, you select the cell and then click the ____ button from the Formula Auditing group on the Formulas tab. evaluate formula
To project a trend that decreases rather than increases, use a step value between ____ for a growth trend 0 and 1
_______ disappear when you ____.correct the error source, insert or delete columns and rows, delete or move cells tracer arrows
Use the XNPV and XIRR functions for cash flows that appear ____. unvevenly spaced intervals
When an investment requires the investor to make multiple future payments, rather than a single initial payment, ___ it may have several different possible internal rates of return
When using the PMT function to calculate monthly loan payments, the interest rate and the number of payments should be based on the interest rate per _____ and the total months to pay off the loan. month
When you borrow money, the money you receive represents a ____ cash flow. positive
When you extrapolate a series, the ____ value represents the amount that each value is increased or multiplied as the series is extended. step
When you extrapolate a series, you do not have to specify a(n) _______ stopping value
With ____ depreciation, the asset depreciates by equal amounts each year of its lifetime until it reaches the salvage value. straight-line
With the PMT function, the ____ argument is 0 when the payments are made at the end of each period. type
You can calculate ______ payments on interest and principal using the CUMIPMT and CUMPRINC functions cumulative
You can extrapolate a series of values from the _____ dialog box. series
You can use the ____ function to estimate how much a dollar amount today is worth in future dollars. fv
You can use the ____________________ Window to view the impact of a changing value in one worksheet on the cell values in the other cells. watch
____ depreciation depreciates an asset by a constant percentage each year rather than a constant amount declining balance
Created by: galvanl