Microsoft Office Tutorials and References
In Depth Information
Exhibit 9.17
Income statement analysis example
Obviously, we cannot use a two variable Data Table for this type of analysis; there
are too many variables to consider simultaneously. This example is an excellent use
of the Scenarios tools. Exhibit 9.18 shows the results of the 7 scenarios. They range
from a loss of $300,000 to a gain of $1,870,000.
9.5 Goal Seek
There is another tool in Excel’s What-If Analysis sub-group, Goal Seek. It is similar
to Solver, except that it functions in reverse: it determines the value of an input that
will result in a specified output. While Solver can manipulate numerous variables
and has a generalized goal to maximize or minimize the objective function, Goal
Seek knows apriori the goal and must find a single variable value, among several,
to arrive at the goal. For example, assume that you want to have a payment of exactly
$1000 for a loan. There are three inputs in the PMT function—interest rate, number
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