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Excel Tools and Net Present Value

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34. As a bank loan officer, you want to reference detailed columnar loan portfolio data with a list of past-due loans. Which of the following is the most effective tool for doing so?
a. Pivot table
b. H Lookup
c. Search function
d. Scatter plot
e. V Lookup

35. Suppose that you are approached with an offer to purchase an investment that will provide cash flows of $1,200 per year for 15 years. The cost of purchasing this investment is $9,800. You have an alternative investment opportunity, of equal risk, that will yield 8% per year. What is the NPV that makes you indifferent between the two options?
a. $10,271.37
b. $436.46
c. $1,197.30
d. $471.37

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Solution Summary

This solution first discusses the various Excel tools available and then illustrates how to solve a net present value problem.

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34. The H Lookup and V Lookup only produce results on a row-by-row or column-by-column basis ...

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