Which of the Following Is a Correct EXCEL Formula to Solve

question 17

Multiple Choice

Which of the following is a correct EXCEL formula to solve for the net present value of a project? Assume that CF0 is expressed as a negative number.

• A) =NPV (k,CF1, CF2,...CFn)+CF0
• B) =NPV (k,CF0,CF1, CF2,...CFn)
• C) =NPV (CF0,CF1, CF2,...CFn)
• D) =NPV (CF1, CF2,...CFn)+CF0

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Definitions:

Unearned Revenue

Prepayment for goods or services which have not yet been delivered or performed, recognized as a liability on the balance sheet until the goods or services are delivered.

Sales Revenue

The sum of revenue from the sale of products or services that are fundamental to a company's main business activities.

Accounting Equation

The accounting equation is a fundamental principle of financial accounting that states assets equal liabilities plus equity.

Stockholders' Equity

The residual interest in the assets of a company after deducting liabilities, essentially representing ownership interest.