Scribd
Upload
2 views

Excel Methods Session-2

The document outlines advanced Excel functions for business valuation and spreadsheet modeling, including data validation, scenario manager, goal seek, and solver. It also covers financial functions such as PV, FV, NPV, IRR, and loan calculations, along with instructions for using VBA to write functions. The session emphasizes practical exercises and the importance of practice in mastering these tools.

Uploaded by

Ritik Yadav
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
2 views

Excel Methods Session-2

The document outlines advanced Excel functions for business valuation and spreadsheet modeling, including data validation, scenario manager, goal seek, and solver. It also covers financial functions such as PV, FV, NPV, IRR, and loan calculations, along with instructions for using VBA to write functions. The session emphasizes practical exercises and the importance of practice in mastering these tools.

Uploaded by

Ritik Yadav
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 15

Course: Business Valuation & Spreadsheet

Modelling

Excel Methods Session 2: Advanced Functions


For Workbook 2
Data Validation
Set the value of a cell within a defined
range or format
Use a dropdown list with desired
values within a range
Complete the exercise in the Data
Validation sheet
Exercise 3: Scenario
Manager
 An advanced feature provided in excel. Part of
What-if Analysis
 Use the data in the tab Scenario Manager.
 You can create a series of scenarios.
 Scenario manager shows the outcome of each
scenario.
 Go to Data  What-if Analysis  Scenario
Manager…
Exercise 4: Goal Seek
Another advanced feature of
excel. Also part of What-if
Analysis.
Use the data in the Goal Seek
tab.
Goal seek can be used to
determine the value of a given
independent variable by
assigning a target value to a
dependent variable
Exercise 5: Solver
Solver is a very powerful tool in
excel. It can solve for a desired
dependent variable result, by
changing the independent
variables.
Go to the tab named Solver.
Complete the exercise.
You will have to install solver by
going to, File  Excel Options
Add-ins  Select ‘Solver Add-in’
The solver:
Go to Data  Solver
The Solver
You can maximize or minimize
the value of a function n solver.
You can do this by changing a
certain series of variables, which
you can specify.
You can also add constraints,
specifying conditions and
boundaries.
Data Tables
Useful when multiple possible input
scenarios are available for a variable.
The inputs can be in a row or in a
column.
The intended output cell should have a
formula connecting it to the input
values that need to be replaced.
Go to Data  What-if analysis  Data
Table
Follow the instructions in the Data
Tables sheet for a practical hands-on.
Financial Functions: PV, FV,
RATE, NPER
The PV (Present Value) and FV (Future
Value) functions are extremely versatile.
They can be used to compute the present
and future values of a single amount,
multiple values, and annuity.
These functions are designed to
accommodate cash flows made at the
beginning of the period.
RATE can determine the interest rate
implied in future cash flows.
NPER can determine the period of
investment for the given details.
Financial Functions: Loan
Functions
Loan EMI calculation: the PMT function
Loan interest paid in a month: IPMT
function
Loan principal paid in a month: PPMT
Loan cumulative interest paid in a
range: CUMIPMT (the loan amount
selected cannot be negative)
Loan cumulative principal paid in a
range: CUMPRINC (the loan amount
selected cannot be negative)
Financial Functions: NPV, IRR,
MIRR
The NPV function returns the sum of
present values of cash flows starting
from period 1. The cash outflow must
be subtracted separately from the
result to arrive at the intended NPV.
IRR returns the internal rate of
return. The negative cash flows are
considered as outflows.
MIRR is the modified version of IRR
with a reinvestment assumption.
Using VBA to write
function.
Enable the developer tab from
Excel options under the
customize ribbon.
Once done, go to the developer
tab,  click Visual Basic  under
Modules in the current workbook,
right click and add a module.
Now add the function for Present
Value of Growing Annuity (PVGA).
Syntax given in the next slide.
VBA Syntax
“Practice doesn't make perfect.
Practice reduces the imperfection.”
~Toba Beta
Thank You
Session End

You might also like