Which of the following formulas is used by Excel to calculate NPV?
A) =npv()
B) =npv(range of cash flows)
C) =npv(discount rate, range of cash flows)
D) =npv(discount rate)

Question

Quizplus · Accepted Answer

The NPV function in Excel requires both the discount rate and the range of cash flows as inputs, so the correct formula is =npv(discount rate, range of cash flows). Option A is incomplete, option B is missing the discount rate input, and option D only includes the discount rate input without the range of cash flows.

Which of the Following Formulas Is Used by Excel to Calculate