Finance 2 Final Exam
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In order to complete the final exam, you will need to complete the problems in the Final Exam Excel Spreadsheet. In this course, we have NOT provided a Final Exam Direction sheet. Directions are right on the excel spreadsheet. If you have not already, you can download the Final Exam Resources in the links below.
You will not be able to complete the final exam without completing the problems in the Excel spreadsheet.
Once you have completed the spreadsheet problems, return to this page and click the green “Start Final Exam” button to begin your Final.
After you pass the final exam with a 70% or better, you can view and print your Finance 2 Certificate of Completion.
Final Exam Resources
Finance 2 Final Exam
Final Exam Summary
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Question 1 of 14
1. Question
In financial decision making, which statement is FALSE?

Question 2 of 14
2. Question
The formula “NPV = PV_{savings} – Initial Investment” is the general formula for NPV and works for all NPV problems. (T/F?)

Question 3 of 14
3. Question
NPV has relevance to our personal lives, not merely business. (T/F?)

Question 4 of 14
4. Question
What is the NPV of this arrow diagram “A Lump Sum Deal”? Discount rate = 9%.

Question 5 of 14
5. Question
What is the NPV of this arrow diagram “An Annuity Deal”? Discount rate = 12%.

Question 6 of 14
6. Question
Chaining to obtain equal timeframe is useful when working a problem that deals with:

Question 7 of 14
7. Question
Profitability Index (PI) is useful when working a problem that deals with:

Question 8 of 14
8. Question
What is wrong with this cash flow if you are NPV’ing with Excel?

Question 9 of 14
9. Question
Stock Price is fundamentally an NPV calculation. (T/F?)

Question 10 of 14
10. Question
When doing stock price calculations, The Big Green Arrow is necessary. (T/F?)

Question 11 of 14
11. Question
Weighted Average Cost of Capital (WACC):

Question 12 of 14
12. Question
What is the NPV of ZoomQuats, LLC’s freecashflow forecast?
There is a complete change over to more modern equipment forecasted for Year 4. Assume a 13% discount rate (equity only).

Question 13 of 14
13. Question
If ZoomQuats LLC has seven owners, each who have 50 shares, what is the share price of ZoomQuats, based on NPV?

Question 14 of 14
14. Question
What is the present value of a perpetuity of $100, assuming 10% discount rate?