Finance Showdown
Pair competition · about 20 minutes · 15 clues across five categories
Join your class
Use a pair nickname. No account required.
How to play
Every pair answers every clue. Correct answers earn the clue’s points. Wrong or missing answers earn zero. Correct answers also earn a speed bonus of up to 20% of the clue value. Final Showdown: lock a wager from zero to your current points before the clue appears. A correct final answer wins the wager; a wrong or missing answer loses it.
Use a calculator and the formula card. Tied leaders may answer a numerical tiebreaker; closest wins, and equally close answers remain tied.
Formula card · calculators allowed
Future value
PV × (1 + r)ⁿ$100 at 10% for two years: $100 × 1.10² = $121.
Present value
FV ÷ (1 + r)ⁿ$110 in one year at 10%: $110 ÷ 1.10 = $100.
Net present value
PV of cash flows − initial costDiscount each future cash flow. Positive NPV adds value at the required return; zero meets it.
Interest rate (simplified model)
Real rate + expected inflation + default risk premium2% + 3% + 5% = 10%.
Stock return
(Sale price − purchase price + dividends) ÷ purchase price($23 − $20 + $2) ÷ $20 = 25%.
Net working capital
Current assets − current liabilities$90,000 − $46,000 = $44,000.
Use rates as decimals; n is the number of periods. Internal financing comes first in the textbook’s pecking order, then debt, then new common stock. Retained earnings are accounting profits, not a cash balance. Match loan term to asset life. Higher expected returns generally require more risk; actual returns are not guaranteed. Diversification reduces risk when investments do not move perfectly together.
Adapted from your Module 10 formula card · Gaspar et al., Introduction to Business, 4th ed. (2024).