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One often overlooked feature of Excel is the What-If Analysis tool that allows you to explore different scenarios without changing the values in your spreadsheet. This function is particularly useful for economics and management majors as well as business owners because you can see how different values affect models, formulas, and projected profits.
To figure your profit from selling these widgets, you create a worksheet in Excel that looks like this:. Notice that the figure in cell A3 represents the number of widgets sold and the figure in B3 represents the profit per widget sold. The figure in C3 was calculated with the following formula:.
However, you may be interested in your total profit at different numbers of widgets sold. Suppose, for example, you want to know what your profit would be if you sold , , or widgets.
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One way to do this is to change the figure in A3 for each of the scenarios we identified above. In other words, you could change A3 to and note the change in profit in C3.
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You could then do the same for and You should now be looking at the Scenario Manager window. Click on the Add button and Excel asks you to name the first scenario. You can choose any name you want but it would be prudent to choose one that is descriptive of the scenario you are creating.mail.wegoup777.online/la-autoridad-del-lider.php
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For our example here, name the scenario Widgets. In the Scenarios Values window that opens, type in and click the OK button. Essentially what you have done is created a new what-if scenario that will calculate the total profit if the number of widgets sold in A3 were Complete the steps above to create two more scenarios, one for widgets and one for widgets. When done, the Scenario Manager window should look like this:.
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The cell at A2 represents the yearly interest rate, the cell at B2 is the length of the loan in years, and the cell at C2 is the amount of the mortgage loan. The formula in D2 is:. Notice that the figure in D2 is negative since Excel assumes that the payments are a negative cash flow from your financial position.
Excel opens up a small window and asks you to input only three variables. The Set Cell variable must be a cell that contains a formula.
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In our example here, it is D2. The To Value variable is the amount you want the cell at D2 to be at the end of the analysis. For us, it is -6, Remember that Excel sees payments as a negative cash flow. So, use cell A2.
Click the OK button and you may notice that Excel flashes a bunch of numbers in the respective cells until the iterations finally converge on a final number. In our case, the cell at A2 should now read about 4. If you want to continue doing what-if analyses, you can try different combinations of numbers and variables to explore the options you have when trying to secure a good interest rate on a mortgage. By working backwards from the results of a formula in a cell, you can explore the different variables in your calculations more clearly.