3. What should be the outcome of B5? 1 Sales 2 Variable Costs 3 Fixed Costs 4 EBIT 2,500,000 0.4 81 ,500,000 -B1-SUM(B2:B3) 5 Degree of Operating Leverage IFERROR(81-82)/B4,NAO) a) #DIV/0! b) #N/A c) 2.43 d) 2.10 e) 1.75 Solution: Which formula in B5 will allow you to determine how many years it will take to quadruple your savings at 11% compounded quarterly? a) NPER(B3/B4.0-BI,B2)/B4 b) NPER(B3/B4.0-B1B2) c) NPER(B3 B4.0-BI.B2/B4 d) NPER(B3/B4.0-B2.B1)/B4 4. 1 Present Value 2 Future Value l 3 Interest Rate 4 Compounding Frequency 5 Number of Years $ 3,000 12,000 11% Solution