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The NPV Function in Excel Takes the Cash Flow from Year

question 75

Short Answer

The NPV function in Excel takes the cash flow from year 0, which is referred to as value 1, and discounts the value by ____________________.


Definitions:

MIRR

Modified Internal Rate of Return, a financial metric used to assess the profitability of investments, adjusting for different cash inflow and outflow timings.

IRR Method

A financial analysis tool used to evaluate the profitability of investments based on the internal rate of return, which calculates the rate at which the net present value of all cash flows is zero.

Cost of Capital

The yield a corporation needs to generate from its investment initiatives to keep its market valuation steady and draw in financing.

Stand-Alone Project

In capital budgeting, a project with no competition either for the task it is to accomplish or for resources.

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