SmartBoard Ch 5

True or false: To find the future value of multiple cash flows, calculate the future value of each cash flow first and then sum them.

true

Spreadsheet functions used to calculate the present value of multiple cash flows assume, by default, that all cash flows occur at the _______ of the period.

end

Select all that apply When entering variables in a spreadsheet function (or in a financial calculator) the "sign convention" can be critical to achieving a correct answer. The sign convention says that outflows are negative values; inflows are positive values. For which variables is this a consideration? future value present value number of periods payment interest rate

future value present value payment

You are solving a present value equation using a financial calculator and are given the number of years for compounding. This should be entered as the _____ value on the financial calculator.

n