Case-Based Critical Thinking Questions Case 6-1 Simon Is Having Trouble

question 31

Multiple Choice

Case-Based Critical Thinking Questions Case 6-1 Simon is having trouble using linked workbooks, so he consults his colleague Brooke for help. Finally, Simon asks Brooke what steps (if any) need to be taken to keep a destination file up-to-date if he updates a value in one of the source files. Which of the following statements by Brooke would be correct?

• A)If a destination file is open when a source file is changed, the destination file will be updated automatically.
• B)Source files cannot be updated unless the corresponding destination file is open.
• C)It is not possible to choose whether a destination file should reflect changes made to the source files.
• D)If a destination file is open when a source file is changed, you need to update the destination file manually so that it reflects the changes.

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Definitions:

Real Option

The value of additional decision-making opportunities available to an investor or company once an initial investment has been made.

Financial Results

The summary of a company's financial performance and position, typically reported on a quarterly and annual basis.

Risk-Adjusted Rates

In capital budgeting, a rate used in place of the cost of capital to reflect especially risky projects.

Interest Rate

The amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.