You will be given, during unit 5, a problem where an individual is trying to make a decision in a business/investment environment. The problem will have multiple variables that have different levels (such as a Good, Fair or Poor market) or that can change (such as length of a loan). You are expected to create an Excel model that allows the individual to see the implications of the various values that the variables can take regarding the decision to be made. (For example, what happens to the profit to be made if the loan length goes from 10 years to 12.)
A good Excel model (and this will be discussed in unit 5):
Has the correct answer for the various calculations.
Has a distinct input and output section making the model easy to read and follow.
Has an output section that allows the individual to assess how the output varies across various levels of the variable under consideration. (In other words, if you are given information about three types of markets, the individual should be able to see the results in all three markets rather than having to input each one individually.)
Has cell references in the formulas so that a change can be input and the model reacts immediately to that change without having to go into the various cell references.
Considers all necessary data to make the decision.
Has clear labels that makes it easy to find the information and calculations. Calculations may be shown in text to demonstrate what is occurring in the cells.
This project will be assigned at the end of unit 5 and is to be submitted within 24 hours of unit 7 Live session. The model must be turned in as an Excel file and not as a PDF. The instructor will test the model to see if the model is built to reflect changes to various parameters.
Here’s the information.
