It Is Better to Use Powerful Functions in Excel to Complete

question 59

True/False

It is better to use powerful functions in Excel to complete a calculation in a single cell than to spread out a calculation over many cells using simpler formulas.

---

Definitions:

Payback Period

The duration of time it takes to recoup the initial investment in a project or asset, calculated by dividing the investment amount by the annual cash inflow.

Internal Rate

Often refers to the internal rate of return (IRR), a metric used to estimate the profitability of potential investments.

Net Present Value

A financial metric that calculates the present value of all cash flows associated with a project, considering both inflows and outflows, to assess profitability.

Initial Investment

The amount of money used to start a project, investment, or venture for the first time.