Microsoft Office Tutorials and References
In Depth Information
Explore outcomes with
When you use a function, your purpose is often to
find out how one thing influences another. When you
use the IRR function, for example, you can find out
how a change in the loan amount, payment amount,
or payment date — or some combination of these
factors — affects the interest received. By typing in
different amounts, and payment dates, you can see
how different scenarios affect the interest rate.
What-If analysis is a systematic way of finding out
how a change in one or more variables affects a
result. Scenario Manager lets you vary one or more
inputs to find out how the result changes. The
advantage of the Scenario Manager is that it stores
a series of values so you can create a single report
or table showing how each value or combination of
values influences the result — your interest rate, in
this example. You can even present this information
as a PivotTable, with all the flexibility it offers.
Note: To create scenarios, you must
first enter the values required into a
worksheet and type a formula that
calculates the answer. This example
uses the IRR function, discussed in
Click and drag to select the cells
that contain the values you want
Click the Data tab.
Click What-If Analysis.
A menu appears.
Click Scenario Manager.
l The Scenario Manager dialog
5 Click Add.
l The Add Scenario dialog box
appears, indicating the cells
selected in Step 1.
Type a name for the scenario.