Which of the Following Performs Calculations on the Data in a Worksheet

question 180

Multiple Choice

Which of the following performs calculations on the data in a worksheet like the one in the accompanying figure and displays the resulting value in a cell?

• A) index
• B) formula
• C) function
• D) ratio

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Definitions:

Investment Funds

These are pooled funds from various investors used to acquire securities and other investment assets, managed by financial professionals.

Present Value Index

An index computed by dividing the total present value of the net cash flow to be received from a proposed capital investment by the amount to be invested.

Competing Proposals

Proposals or bids from different entities aimed at securing a contract or project, often requiring evaluation to select the most advantageous.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.