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If You Were Going to Evaluate the Wisdom of an Investment

question 72

Multiple Choice

If you were going to evaluate the wisdom of an investment made now that created a stream of profits in the future, which Excel function would help you calculate it.


Definitions:

Discounting

The process of determining the present value of a future amount of money or a series of future cash flows, by applying a discount rate.

Net Realizable Value

The estimated selling price of goods or assets in the course of normal business, minus any costs associated with the sale or completion.

Gross Receivables

The total amount of money owed to a company by its customers before deducting any allowance for doubtful accounts.

Bad Debt Expense

An expense reported on a company's income statement, representing the estimated amount of accounts receivable that will not be collected.

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