The Excel Formula to Compute the Net Present Value of Cash

question 36

Multiple Choice

The Excel formula to compute the net present value of cash flows for a $55,000 investment (−55,000 at year zero) and cash inflows of $20,000 per year for years 1 through 4, using a 4% discount rate is:

• A) =NPV(0.04,−55000,20000,20000,20000,20000)
• B) =NPV(−55000,20000,20000,20000,20000,0.04)
• C) =NPV(0.04, 55000,−20000,−20000,−20000,−20000)
• D) =NPV(55000,−20000,−20000,−20000,−20000,0.04)

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Definitions:

Myelin

A fatty substance that surrounds and insulates the axons of nerve cells, speeding up the transmission of electrical signals in the nervous system.

Antagonist

A substance that blocks or dampens a biological response by binding to and blocking a receptor rather than activating it.

Neurotransmitter

Compounds responsible for transmitting signals between neurons through synapses within the nervous system.

Agonist

An agonist is a chemical or drug that binds to receptors in the brain and activates them, mimicking the effects of naturally occurring substances and potentially influencing physiological and psychological processes.