What Is the Excel Formula to Compute the Internal Rate

question 14

Multiple Choice

What is the Excel formula to compute the internal rate of return for a $32,000 investment and cash inflows of $10,000 per year for years 1 through 4?

• A) =IRR(33000,−10000,−10000,−10000,−10000)
• B) =IRR(−33000,10000,10000,10000,10000)
• C) =IRR(−10000,−10000,−10000,−10000,−33000)
• D) =IRR(10000,10000,10000,10000,−33000)

Explain the influence of availability and representativeness heuristics on judgment and decision-making.

Recognize the importance of framing and context in the application of heuristics.

Analyze the role of stereotypes and misinformation in shaping judgments based on the availability heuristic.

Understand the interdependencies between humans and their physical environment.

---

Definitions:

Paasche Index

An economic measure that calculates the change in the cost of purchasing a specified basket of goods and services in a given year compared to a base year, using current-period weighting.

Nominal Income

The amount of money earned in current dollars, not adjusted for inflation.

Revealed Preference

A theory that deduces preferences of consumers by observing their choices and behaviors rather than their stated preferences.

Inflation Level

The pace at which the average price level of goods and services ascends, diminishing the value of money.