Present value pv - Study guides, Class notes & Summaries

Allows you to automatically populate cells in a worksheet - Answer-Fill Feature Allows you to complete a pattern within a range of cells - Answer-Series Feature Allows you to lock rows and columns when you navigate through a data table - Answer-Freeze Pain Feature Allows information on the table to be presented in an organized fashion - Answer-Sorting Feature Allows you to display only specific information on a data table - Answer-Filtering Feature cells automatically update when a formula...

CFA Level 1: Quantitative Methods Test || With 100% Accurate Solutions CFA Level 1: Quantitative Methods Test || With 100% Accurate Solutions What do I use when I want to assign every member of a group of size n to n slots? - ANSWER - n factorial. What do I use when I want to count the number of ways to apply one of three or more labels to each member of a group? - ANSWER - Multinomial. What do I use when I want to count the number of ways I can choose r objects from n, when the order ...

Which loan type requires the borrower to repay a single lump sum payment at some time in the future with interest? o :## pure discount Pure Discount Loans are the simplest form of loan. Which loan type requires calls for the borrower to pay interest each period and to repay the entire principal at some point in the future? o :## Interest-only Suppose a business takes out a $7,000, five-year loan at 6 percent that will be paid annually with a single, fixed payment each period. How much...

As a rule of thumb, it is best if consumer debt does not exceed: A. 20% of net income. B. 20% of gross income. C. 3 to 6 months of expenses. D. 36% of gross monthly income. - ANSWER A. 20% of net income This is a rule of thumb, along with the others that recommend housing debt be limited to 28% of gross income, and total debt not to exceed 36% of gross income. David has won the Illinois state lottery. He must decide whether to receive annual payments of $250,000 at the beginning of e...

What is the time value of moneyrefers to the observation that it is better to receive money sooner than later Future Value Versus Present ValueFuture value is compounding, present value is discounting Future Value of a Single Amountthe value in future dollars of some cash flow today The Equation for Future ValueFV=PV(1+r)^n -FV(n)= future value or payoff after n periods -PV(0)= initial principal or present value -r= per period compound rate of interest -n= number of periods that the m...

Discounted Cash flow Analysis Questions and Answers 2023/2024 Latest Update. Question 1: 2D2-LS03 Which characteristic differentiates the net present value (NPV) and the internal rate of return (IRR) methods? NPV yields a percentage; IRR results in a dollar figure. NPV considers the initial cash investment; IRR examines cash flows after the initial investment. NPV examines cash flows after the initial investment; IRR considers the initial cash investment. NPV results in a dollar figure; ...

CEBS - GBA 1 AND 2- PRACTICE EXAM QUESTIONS AND ANSWERS 2024 WITH COMPLETE SOLUTION Which of the following statements correctly describes minimum requirements that group benefit plans typically must meet in order to be prospectively rated on contract renewal? Ans- The more unpredictable the event that will trigger a claim, the larger the minimum group size and premium requirements Which of the following statements correctly describes the term graduation as it applies to mortality tables?...

DCF Schedule – Important Dates In order to properly discount cash flows to the present value, we must consider the timing of when those cash flows occur. Which of the following is not one of the important dates when creating a DCF valuation? Review Later Cash Flow Timing Fiscal Year End Reporting Date Valuation Date 2 Time Quantity of Money As an analyst, it’s important to understand how invested cash flows compound into the future, as well as calculate the present value of a f...

Future Value (FV) correct answers PV(1+r)^n Present Value (PV) correct answers FV/(1+r)^n FV= cash flow for the period r= the rate in percentage n= the period nominal rate of return correct answers the rate of return expressly ignores potential changes in the purchasing power of associated currency compounding correct answers accumulation of the time value over multiple periods discount rate correct answers used to get FV back to PV perpetuity correct answers a stream of ca...

Adventis Financial Modeling Certification (FMC) Level 2 Exam Prep (New 2023/ 2024 Update) Questions and Verified Answers_ 100% Correct QUESTION why is tax-effected EBIT used rather than net income Answer: - the valuation should not depend on capital structure - applying the tax-rate directly to EBIT without subtracting interest expense eliminates the impact of capital structure to cash flow QUESTION cash flow is projected out in the projection period which is typical...