Does the NPV Function in Excel Correspond to the Financial

question 71

Essay

Does the NPV function in Excel correspond to the financial definition of net present value? Explain your answer.

---

Definitions:

Stock Owners

Individuals or entities that hold shares of stock in a corporation, representing partial ownership of that corporation.

Par Preferred Stock

Preferred shares of a company's stock with a fixed face value that typically determines dividend payments.

Par Common Stock

This is a classification of common stock that has a nominal value assigned in the corporate charter and is used in the accounting records.

Shares

Units of ownership in a company or financial asset.