Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

I dont understand what its asking? 1 Click on the NPV and IRR tab and enter your name in Cell C1. If Cell C1 is

I dont understand what its asking?

image text in transcribed

image text in transcribedimage text in transcribed

1 Click on the "NPV and IRR" tab and enter your name in Cell C1. If Cell C1 is left blank, you will not be able to see your score. 2 Each yellow cell requires a formula. 3 The formula must only conta in cell addresses. 4 Each correct formula will begin with =,+, ar . 5 The basic mathematical operators are +, and / 6 Addition: To add the values in cells A1 and B4, the formula is =A1+B4 7 Subtraction: To subtract the value in cell B4 from the value in cell A1, the formula is =A1B4 8 Multiplication: To multiply the values in cells A1 and B4, the formula is=A1*B4 9 Division: To divide the value in cell A1 by the value in cell B4, the formula is =A1/B4 10 11 Jsing the NPV function. The NPV function returns the net present value of an investment based on a discount rate and a series of future 12 cash outflows (negative values) and cash inflows (posithe values). 13 The NPV function has the following syntax: =NPV( Rate, Value1,[Value2] ...) 14 Value 1 must be the amount of cashflow at the END of the first period. 15 The initial cash flow must be added in separately, and is NOT part of the NPV formula. 16 17 Jsing the IRR function. The IRR function returns rate of return of a glven series af cash flows. 18 The IRR function has the following syntax: IRRR(Values.[G uess]] 19 20 Jsing absolute addresses 21 Jnce a formula is created, you will often want to copy the formula to other columns and rows. It's important to understand that excel always uses "relative 22 addresses" unless you indicate otherwise by creating an "absolute address". For example, if you are calculating the cost of purchasing 2 boxes of cereal at a cost of $3.95 per box, the formula in ccll B28 is =826B27. Although we read cell B28 as "Multiply 2 boxes by $3.95 ", Excel is actually calculating the value 23 n cell B28 as "Multiply the value in the cell in the same column (column B) 2 rows above (row 26 ) by the value in the cell in the same column 1 row above (row 27). 17 Using the IRR function. The IRR function returns rate of return of a given series of cash flows. 18 The IRR function has the following syntax: -IRA(Values,[Guess]) Using absolute addresses Once a formula is created, you will often want to copy the formula to other columns and rows. It's important to understand that excel always uses "relative addresses' unless you indicate otherwise by creating an "absolute address". For example, if you are calculating the cost of purchasing 2 boxes of cereal at a cost of $3.95 per box, the formula in cell 828 is =B26827. Although we read cell 828 as "Multiply 2 boxes by $3.95 ", Excel is actually calculating the value in cell B28 as "Multiply the value in the cell in the same column (column B) 2 rows above (row 26 ) by the value in the cell in the same column 1 row above (row 27), This works just fine to calculate the cost of 2 boxes, but if we copy the formula in cell 328 to C28, Excel will assume relative references. The formula in cell 31C28 will become =[26CZ7. Since Cell C27 is blank, the formula will return a value of $0 (which is an excellent deal for 5 boxes of cereal, but it isn't accurate!) 32 Adding a $ sign before the column or fow reference locks the formula to a specific location. 32 34 35 If we modify the formula in cell B28 to =826$8$27 before we copy the formula, Excel will not change the row or the column of the second variable. When the formula is copied to columns [ through E, the formulas become: CellC28=C26$B$27CellD28=D26$B$27CellE28=E26$B$27 Sometimes, you will want the column to stay fixed, but allow the row to remain relative when it's copied. If so, add a dollar sign before the column, but not the row (i.e.SB27) If you want the row to stay fixed, but allow the column to remain relative when it's copied, add a dollar sign before the row, but not the column (i.e. B$27 ). Tapping the F4 button while entering the formula (or in the formula bar) toggles among the 3 absolute options (Absolute Column and 45 Absolute Row $B$28, Absolute Column and Relative Row $B2B, Relative Column and Absolute Row B$28 ) Enter your name in cell C1 Using the NPV function, compute the net present value of this investment. Using the IRR function, compute the internal rate of return for this investment. 1 Click on the "NPV and IRR" tab and enter your name in Cell C1. If Cell C1 is left blank, you will not be able to see your score. 2 Each yellow cell requires a formula. 3 The formula must only conta in cell addresses. 4 Each correct formula will begin with =,+, ar . 5 The basic mathematical operators are +, and / 6 Addition: To add the values in cells A1 and B4, the formula is =A1+B4 7 Subtraction: To subtract the value in cell B4 from the value in cell A1, the formula is =A1B4 8 Multiplication: To multiply the values in cells A1 and B4, the formula is=A1*B4 9 Division: To divide the value in cell A1 by the value in cell B4, the formula is =A1/B4 10 11 Jsing the NPV function. The NPV function returns the net present value of an investment based on a discount rate and a series of future 12 cash outflows (negative values) and cash inflows (posithe values). 13 The NPV function has the following syntax: =NPV( Rate, Value1,[Value2] ...) 14 Value 1 must be the amount of cashflow at the END of the first period. 15 The initial cash flow must be added in separately, and is NOT part of the NPV formula. 16 17 Jsing the IRR function. The IRR function returns rate of return of a glven series af cash flows. 18 The IRR function has the following syntax: IRRR(Values.[G uess]] 19 20 Jsing absolute addresses 21 Jnce a formula is created, you will often want to copy the formula to other columns and rows. It's important to understand that excel always uses "relative 22 addresses" unless you indicate otherwise by creating an "absolute address". For example, if you are calculating the cost of purchasing 2 boxes of cereal at a cost of $3.95 per box, the formula in ccll B28 is =826B27. Although we read cell B28 as "Multiply 2 boxes by $3.95 ", Excel is actually calculating the value 23 n cell B28 as "Multiply the value in the cell in the same column (column B) 2 rows above (row 26 ) by the value in the cell in the same column 1 row above (row 27). 17 Using the IRR function. The IRR function returns rate of return of a given series of cash flows. 18 The IRR function has the following syntax: -IRA(Values,[Guess]) Using absolute addresses Once a formula is created, you will often want to copy the formula to other columns and rows. It's important to understand that excel always uses "relative addresses' unless you indicate otherwise by creating an "absolute address". For example, if you are calculating the cost of purchasing 2 boxes of cereal at a cost of $3.95 per box, the formula in cell 828 is =B26827. Although we read cell 828 as "Multiply 2 boxes by $3.95 ", Excel is actually calculating the value in cell B28 as "Multiply the value in the cell in the same column (column B) 2 rows above (row 26 ) by the value in the cell in the same column 1 row above (row 27), This works just fine to calculate the cost of 2 boxes, but if we copy the formula in cell 328 to C28, Excel will assume relative references. The formula in cell 31C28 will become =[26CZ7. Since Cell C27 is blank, the formula will return a value of $0 (which is an excellent deal for 5 boxes of cereal, but it isn't accurate!) 32 Adding a $ sign before the column or fow reference locks the formula to a specific location. 32 34 35 If we modify the formula in cell B28 to =826$8$27 before we copy the formula, Excel will not change the row or the column of the second variable. When the formula is copied to columns [ through E, the formulas become: CellC28=C26$B$27CellD28=D26$B$27CellE28=E26$B$27 Sometimes, you will want the column to stay fixed, but allow the row to remain relative when it's copied. If so, add a dollar sign before the column, but not the row (i.e.SB27) If you want the row to stay fixed, but allow the column to remain relative when it's copied, add a dollar sign before the row, but not the column (i.e. B$27 ). Tapping the F4 button while entering the formula (or in the formula bar) toggles among the 3 absolute options (Absolute Column and 45 Absolute Row $B$28, Absolute Column and Relative Row $B2B, Relative Column and Absolute Row B$28 ) Enter your name in cell C1 Using the NPV function, compute the net present value of this investment. Using the IRR function, compute the internal rate of return for this investment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

Given a function x; -n

Answered: 1 week ago