Microsoft Office Tutorials and References

In Depth Information

**ASSIGNMENT 1: CREATING A SPREADSHEET FOR DECISION SUPPORT**

FIGURE 6-7

The Insert Function dialog box

The Function Arguments dialog box appears to help you build the formula (see Figure 6-8). In the

Values text box, either enter the cells that contain all your cash outflows and inflows (B49:B52), or click

and drag your mouse to select cells B49 through B52. Notice that Excel writes the formula for you in cell

B53:

IRR(B49:B52). You do not have to enter a value in the Guess box. When you click OK, Excel

calculates the IRR and places the result in cell B53.

¼

FIGURE 6-8

The Function Arguments dialog box for the IRR function

After you complete all the formulas in the sections, try testing your spreadsheet with various

combinations of the three inputs (there are eight possible combinations, as listed in the next section). If you receive

any error messages or see strange values in the cells, go back and check your formulas.

The DSS spreadsheet model contains large numbers that represent millions or billions of dollars.

Accountants often simplify their spreadsheets by listing the outputs in multiples of thousands or millions of dollars. It

is not hard to do

—

you simply divide the cells by a thousand or a million depending on the scale

—

but for the