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HBX Core Final Exam _ (Questions & Answers) Already Passed.pdf
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9/1/24, 8:24 PMHBX Core Final Exam
Jeremiah
Terms in this set (57)
Is a calculation of the present values of all the cash inflows and outflows of a project or
investment.
Net Present Value Excel formula =NPV(E4,B3:B12)+B2
Remember,for NPV you have to manually add the negative outflow from time zero
related to the initial investment.
Asset/Expense Accounts Asset and expense accounts increase with debit and decrease with credit.
Shows a company's financial performance, because it shows the accumulation of all
Income Statement
nominal accounts over a period of time.
Gross Profit Sales Revenue minus COGS.
Accounts Payable Turnover Credit Purchases/Average Accounts Payable Balance.
The discount rate that sets the net present value (NPV) of a project equal to zero. The
Internal Rate of Return (IRR) IRR allows us to find the percentage rate that would be earned for a given set of cash
flows.
Gross Profit Margin Calculation Gross Profit/Revenue =Gross Profit Margin
Average Total Assets/Average Equity.
Leverage Ratio Calculation
Suggested Formula =Average (B11,D5)/Average (Sum(B16:B18),D8).
It is calculated by multiplying the annual payment by the present value of an annuity
factor.
Present Value Calculation
$18,000*6.71008=$120,781
The return that a business generates during a period on equity invested in the business
by the owners of the business.
Return on Equity (ROE)
Measured in DuPont Framework.
The return or profit received as a result of investing funds.
Return on Investment (ROI)
Not measured by the DuPont Framework.
HBX Core Final Exam
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