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    Lesson 5 Slides

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    ka
    This document discusses using Excel financial functions and what-if analysis to evaluate financing and investment alternatives. It introduces tools like PMT, FV, NPV and IRR to calculate loan installments, total costs, and evaluate the best financing option for a company building a new wind power plant. The lesson objectives are to understand what-if analysis and use functions like PMT and FV along with scenarios, goal seek and naming cells to choose the optimal mortgage from various bank offers to finance the project. Files provided include slides, a starting and solved Excel workbook, and an assignment.

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    Lesson 5 Slides

    Uploaded by

    ka
    41 views8 pages
    This document discusses using Excel financial functions and what-if analysis to evaluate financing and investment alternatives. It introduces tools like PMT, FV, NPV and IRR to calculate loan installments, total costs, and evaluate the best financing option for a company building a new wind power plant. The lesson objectives are to understand what-if analysis and use functions like PMT and FV along with scenarios, goal seek and naming cells to choose the optimal mortgage from various bank offers to finance the project. Files provided include slides, a starting and solved Excel workbook, and an assignment.

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    30424 lesson 5 slides

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    This document discusses using Excel financial functions and what-if analysis to evaluate financing and investment alternatives. It introduces tools like PMT, FV, NPV and IRR to calculate loan installments, total costs, and evaluate the best financing option for a company building a new wind power plant. The lesson objectives are to understand what-if analysis and use functions like PMT and FV along with scenarios, goal seek and naming cells to choose the optimal mortgage from various bank offers to finance the project. Files provided include slides, a starting and solved Excel workbook, and an assignment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    41 views8 pages

    Lesson 5 Slides

    Uploaded by

    ka
    This document discusses using Excel financial functions and what-if analysis to evaluate financing and investment alternatives. It introduces tools like PMT, FV, NPV and IRR to calculate loan installments, total costs, and evaluate the best financing option for a company building a new wind power plant. The lesson objectives are to understand what-if analysis and use functions like PMT and FV along with scenarios, goal seek and naming cells to choose the optimal mortgage from various bank offers to finance the project. Files provided include slides, a starting and solved Excel workbook, and an assignment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    COMPUTER SCIENCE

    code 30424 a.y. 2018-19

    Lesson 5
    What-if analysis: solving financing and investing problems

    SEDIN
    IT Education Services Center
    2

    Objectives of the lesson


    • Understand the meaning of what-if analysis and the tools
    available in the spreadsheet

    • Learn how to use Excel financial functions to solve financing and


    investing problems
    3

    Financial functions
    • They allow to make calculations that are typical of financial math
    and corporate finance, without manually setting up complex
    calculations and formulas
    • They allow to calculate installments, interest rates, payments,
    amortizations and to evaluate investments, loans etc.
    • Examples: PMT, FV, RATE, IPMT, NPV, IRR
    4

    Our case
    Evaluation and choice of financing and investing alternatives:
    • Clean Energy Inc. wants to build a new wind power plant to
    produce electricity
    • A mortgage is needed to finance the project, and it has to be
    chosen among the various products offered by different banks
    5

    Development
    To solve the problem we have to:
    1. Calculate the installment and total cost of each mortgage
    2. Search for the best alternatives available
    3. Use some tools of what-if analysis for choosing the best
    financing alternative
    4. Evaluate an investment
    6

    Tools to learn with today’s lecture


    • Financial functions: PMT, FV
    • Naming cells and ranges
    • Paste command options (Transpose)
    • Scenarios
    • Goal seek
    7

    Files of the lesson


    In the zip file 30424 ENG - 06 - Lesson 5.zip you will find these files:
    • 30424 lesson 5 slides.pdf: these slides
    • Evaluation.xlsx : starting file of the lesson
    • Evaluation solved.xlsx : solved file
    • Assignment 30424 lesson 5.pdf: mock-up questions of the exam
    8

    Book references
    Computer skills handbook for economics, third edition:
    Chapters n. 4.5.1, 4.5.5, 5.1.1, 5.1.3, 5.1.4

    Excel workbook, second edition: All the exercises of unit 4

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