FM — Certificate in Financial Modelling Year Practice Questions
The free FM — Certificate in Financial Modelling questions that deal with year, with answers and explanations. The full bank and the timed practice test cover every topic the exam asks about.
Question #5
6. You have forecasted the free cash flow for the next three years as follows: Year 1: $100,000, Year 2: $120,000, Year 3: $140,000. If the discount rate is 8%, what is the present value of Year 2 cash flow?
Correct answer: C
Explanation
PV = Future Cash Flow / (1 + r)^n where r=0.08 and n=2.
Question #8
9. If a company's sales are projected to decline by 5% annually, and Year 1 sales are $1 million, what will Year 3 sales be?
Correct answer: A
Explanation
Year 3 sales = $1,000,000 * (0.95)^2.
Continue with FM — Certificate in Financial Modelling
Unlock the full question bank
You have read the first 10 questions. A subscription opens every question in FM — Certificate in Financial Modelling, the full timed practice test, and your progress and weak-topic reporting.
Single exam
$19.99for 30 days
Full question bank and practice test for one exam, for 30 days.
Single exam
$49.99for 1 year
One exam for a full year. Nothing renews and nothing to cancel.
Full access
$39.99/mo
Every exam in the catalogue, month to month.
Full access
$199.99/yr
Every exam in the catalogue for a year.
Already subscribed? Sign in to pick up where you left off.
All FM — Certificate in Financial Modelling practice questions →