Excel Holden Sheet Quiz 1
Quiz
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Top of Form Please Note: It is recommended that you save your response as you complete each question. |
Question 1 (2 points) Read the following two statements and determine whether they are correct or incorrect. A. For a given interest rate and cash flow - the longer the time period, the smaller the future value. B. For a given time period and cash flow - the higher the interest rate, the smaller the present value
Question 1 options: | A) | Both statements are incorrect | | B) | A is incorrect but B is correct | | C) | A is correct but B is incorrect | | D) | Both statements are correct |
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Question 2 (2 points) Would you be willing to receive $600 today in exchange for receiving $1000 in 7 periods, if your discount rate was 10% per period?
Question 2 options: | A) | Yes | | B) | No, the number of periods would have to be less than 5.36 | | C) | No, the interest rate would have to be less than 7.57% | | D) | There is not enough information to answer this question. |
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Question 3 (2 points) A single cash flow of $932.47 is available now (in period 0). For this cash flow, the appropriate discount rate per period is 3.9%. What is the period 4 future value of this single cash flow?
Question 3 options: | A) | $1086.67 | | B) | $1124.56 | | C) | $1156.24 | | D) | $1201.91 | | E) | $1216.65 |
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Question 4 (2 points) You will receive $800 in 3 periods and $1200 in 4 periods. How much are those two cash flows worth today, if your discount rate is 6% per period?
Question 4 options: | A) | $1475.67 | | B) | $1504.78 | | C) | $1568.90 | | D) | $1599.97 | | E) | $1622.21 |
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Question 5 (2 points) A single cash flow of $1673.48 will be received in 4 periods. For this cash flow, the appropriate discount rate per period is 7.8%. What is the present value of this single cash flow?
Question 5 options: | A) | $975.67 | |
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Top of Form Please Note: It is recommended that you save your response as you complete each question. |
Question 1 (2 points) Read the following two statements and determine whether they are correct or incorrect. A. For a given interest rate and cash flow - the longer the time period, the smaller the future value. B. For a given time period and cash flow - the higher the interest rate, the smaller the present value
Question 1 options: | A) | Both statements are incorrect | | B) | A is incorrect but B is correct | | C) | A is correct but B is incorrect | | D) | Both statements are correct |
Save
Question 2 (2 points) Would you be willing to receive $600 today in exchange for receiving $1000 in 7 periods, if your discount rate was 10% per period?
Question 2 options: | A) | Yes | | B) | No, the number of periods would have to be less than 5.36 | | C) | No, the interest rate would have to be less than 7.57% | | D) | There is not enough information to answer this question. |
Save
Question 3 (2 points) A single cash flow of $932.47 is available now (in period 0). For this cash flow, the appropriate discount rate per period is 3.9%. What is the period 4 future value of this single cash flow?
Question 3 options: | A) | $1086.67 | | B) | $1124.56 | | C) | $1156.24 | | D) | $1201.91 | | E) | $1216.65 |
Save
Question 4 (2 points) You will receive $800 in 3 periods and $1200 in 4 periods. How much are those two cash flows worth today, if your discount rate is 6% per period?
Question 4 options: | A) | $1475.67 | | B) | $1504.78 | | C) | $1568.90 | | D) | $1599.97 | | E) | $1622.21 |
Save
Question 5 (2 points) A single cash flow of $1673.48 will be received in 4 periods. For this cash flow, the appropriate discount rate per period is 7.8%. What is the present value of this single cash flow?
Question 5 options: | A) | $975.67 | |