Financial =NPV(rate,value1,[value2],...)

Quiz =NPV — 15 Questions

15 quiz questions about =NPV — test syntax, arguments, examples & errors!

Questions: 10 questions 15 questions Random 10 or 15 questions from the pool + shuffled options each time

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Progress — 15 questions 1 of 15

Question 1 of 15 1/15

Which category does =NPV belong to?

Question 2 of 15 2/15

What is the type of argument “value1” in =NPV?

Question 3 of 15 3/15

Which statement about =NPV is correct?

Question 4 of 15 4/15

How many required arguments does =NPV have?

Question 5 of 15 5/15

Since which Excel version is =NPV available?

Question 6 of 15 6/15

Which use case fits =NPV?

Question 7 of 15 7/15

In =NPV, which is argument #1?

Question 8 of 15 8/15

In =NPV, which is argument #2?

Question 9 of 15 9/15

Is argument “rate” required in =NPV?

Question 10 of 15 10/15

Which formula is a valid example of =NPV?

Question 11 of 15 11/15

Is =NPV volatile?

Question 12 of 15 12/15

Is argument “value1” required in =NPV?

Question 13 of 15 13/15

Which is the correct syntax of =NPV?

Question 14 of 15 14/15

How many arguments does =NPV have in total?

Question 15 of 15 15/15

Does =NPV return a dynamic array?

Click a question to see the answer.

1. Which category does =NPV belong to?

A. Web
B. Statistical
C. Lookup & Reference
D. Financial ✓

Explanation: Category is “Financial”.

2. What is the type of argument “value1” in =NPV?

A. Number ✓
B. Value
C. Mixed
D. Array

Explanation: Type of “value1” is “Number”.

3. Which statement about =NPV is correct?

A. If n is the number of cash flows in the list of values, the formula for NPV is:
B. The NPV investment begins one period before the date of the value1 cash flow and ends with the last cash flow in the list. The NPV calculation is based on future cash flows. If your first cash flow occurs at the beginning of the first period, the first value must be added to the NPV result, not included in the values arguments. For more information, see the examples below. ✓
C. Output is always a dynamic array
D. Requires add-in

Explanation: Correct: The NPV investment begins one period before the date of the value1 cash flow and ends with the last cash flow in the list. The NPV calculation is based on future cash flows. If your first cash flow occurs at the beginning of the first period, the first value must be added to the NPV result, not included in the values arguments. For more information, see the examples below.

4. How many required arguments does =NPV have?

A. 2 ✓
B. 4
C. 3
D. 1

Explanation: =NPV has 2 required, 0 optional (2 total).

5. Since which Excel version is =NPV available?

A. Excel 2007 (Compatibility)
B. All versions ✓
C. Excel 2019
D. Excel 365

Explanation: Version: “All versions”.

6. Which use case fits =NPV?

A. Investment Appraisal
B. Financial Calculations ✓
C. Data Cleaning
D. Forecasting & Trends

Explanation: Use case “Financial Calculations” fits NPV.

7. In =NPV, which is argument #1?

A. value
B. lookup_value
C. criteria
D. rate ✓

Explanation: Argument #1 is “rate”.

8. In =NPV, which is argument #2?

A. criteria
B. lookup_value
C. value1 ✓
D. rate

Explanation: Argument #2 is “value1”.

9. Is argument “rate” required in =NPV?

A. —
B. Yes
C. No
D. Yes ✓

Explanation: “rate” is required.

10. Which formula is a valid example of =NPV?

A. NPV(A2, A3, A4, A5, A6)
B. =NPV(A2, A3, A4, A5, A6, 0)
C. =NPV(A2, A3, A4, A5, A6) ✓
D. =IRR(A2, A3, A4, A5, A6)

Explanation: Correct example: =NPV(A2, A3, A4, A5, A6)

11. Is =NPV volatile?

A. Yes
B. No ✓
C. No
D. —

Explanation: NPV is not volatile.

12. Is argument “value1” required in =NPV?

A. No
B. Yes ✓
C. Yes
D. —

Explanation: “value1” is required.

13. Which is the correct syntax of =NPV?

A. =IRR(rate,value1,[value2],...)
B. NPV(rate,value1,[value2],...)
C. =NPV(rate,value1,[value2],..., 0)
D. =NPV(rate,value1,[value2],...) ✓

Explanation: Correct syntax: =NPV(rate,value1,[value2],...)

14. How many arguments does =NPV have in total?

A. 3
B. 2 ✓
C. 1
D. 4

Explanation: =NPV has 2 required, 0 optional (2 total).

15. Does =NPV return a dynamic array?

A. No
B. —
C. Yes
D. No ✓

Explanation: NPV does not spill.