CES Financial Functions & Modeling 2

Question 1

How does the XNPV function differ from the standard NPV function?

Accepted Answer

XNPV handles cash flows that occur at irregular time intervals

Answer

XNPV uses different discount rates for each period

Answer

XNPV only works with positive cash flows

Answer

XNPV calculates net present value in foreign currencies

Question 2

Which Excel function calculates straight-line depreciation of an asset for one period?

Accepted Answer

SLN

Answer

DB

Answer

DDB

Answer

SYD

Question 3

What does the RATE function calculate in Excel?

Accepted Answer

The interest rate per period of an annuity

Answer

The rating score of an investment portfolio

Answer

The ratio of payments to principal over time

Answer

The rate of return on equity-only investments

Question 4

Which Excel function calculates the Modified Internal Rate of Return?

Accepted Answer

MIRR

Answer

IRR

Answer

XIRR

Answer

RATE

Question 5

What is the purpose of the IPMT function in Excel?

Accepted Answer

Calculate the interest portion of a specific loan payment

Answer

Calculate the investment payment multiplied by time periods

Answer

Calculate the initial principal of a mortgage transaction

Answer

Calculate the implied payment margin on a treasury bond

Question 6

Which Excel function calculates the cumulative interest paid on a loan between two specified periods?

Accepted Answer

CUMIPMT

Answer

IPMT

Answer

PPMT

Answer

CUMPRINC

Question 7

Which Excel function calculates asset depreciation using the fixed-declining balance method?

Accepted Answer

DB

Answer

SLN

Answer

SYD

Answer

AMORT