LATEST HBX CORE FINAL EXAM 2024-2025
QUESTIONS WITH 100% CORRECT ANSWERS
Net Present Value - CORRECT ANSWER Is a calculation of the present values of all
the cash inflows and outflows of a project or investment.
Excel formula =NPV(E4,B3:B12)+B2
Remember,for NPV you have to manually add the negative outflow from time zero
related to the initial investment.
Asset/Expense Accounts - CORRECT ANSWER Asset and expense accounts increase
with debit and decrease with credit.
Income Statement - CORRECT ANSWER Shows a company's financial performance,
because it shows the accumulation of all nominal accounts over a period of time.
Gross Profit - CORRECT ANSWER Sales Revenue minus COGS.
Internal Rate of Return (IRR) - CORRECT ANSWER The discount rate that sets the
net present value (NPV) of a project equal to zero. The IRR allows us to find the
percentage rate that would be earned for a given set of cash flows.
Leverage Ratio Calculation - CORRECT ANSWER Average Total Assets/Average
Equity.
Suggested Formula =Average (B11,D5)/Average (Sum(B16:B18),D8).
Present Value Calculation - CORRECT ANSWER It is calculated by multiplying the
annual payment by the present value of an annuity factor.
$18,000*6.71008=$120,781
Return on Equity (ROE) - CORRECT ANSWER The return that a business generates
during a period on equity invested in the business by the owners of the business.
Measured in DuPont Framework.
Return on Investment (ROI) - CORRECT ANSWER The return or profit received as a
result of investing funds.
Not measured by the DuPont Framework.
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