Microsoft Office Tutorials and References
In Depth Information
ASSIGNMENT 2: USING THE SPREADSHEET FOR DECISION SUPPORT
Data About the College:
Tuition and Fees
30,000
Room and Board
15,000
Books and Supplies
4,000
Cost Increase: Tuition and Fees
10%
Cost Increase: Room and Board
11%
Cost Increase: Books and Supplies
8%
College Grad Salary & Benefits
50,000
Data About You:
Number of Years in College (4, 5, or 6)
4
Work Region (NE, SE, NW, SW, MID)
NE, SW
High School Grad Salary & Benefits
35,000
Low Risk Investment Rate (XX)
1%, 4%, 7%
FIGURE 10-10
Question 3 input data
starting salaries are the same in the two regions. Of
course, the regions differ in their salary increases. How much does that factor matter? Is one region much
better than the other for a lifetime of work?
Enter the inputs for the school, then vary the regions and the interest rates. Observe the NPV values in
the Key Results area, and then manually record them in a data collection area at the top of the Inputs area.
You should record six data points. Copy the data to a new worksheet for graphing purposes, and name the
sheet Two Regions. Create a chart from the data.
Make a note of your answer to Question 3 on the face of the spreadsheet or on paper. Is one region a
much better financial choice than the other? You will record your answer in a memo later.
Question 4: Consider a student who thinks he will need six years to graduate. The student has three job
options out of high school. One option would pay poorly compared with his potential earnings as a college
graduate, one option would pay adequately, and one would pay well. Should the student go to college or take
one of the jobs out of high school? The inputs for answering the question are shown in Figure 10-11.
Assume that the college and high school graduates
Data About the College:
Low pay
Medium pay
High pay
Tuition and Fees
20,000
20,000
20,000
Room and Board
10,000
10,000
10,000
Books and Supplies
3,000
3,000
3,000
Cost Increase: Tuition and Fees
10
10
10
Cost Increase: Room and Board
9
9
9
Cost Increase: Books and Supplies
6
6
6
College Grad Salary & Benefits
50,000
50,000
50,000
Data About You:
Number of Years in College (4, 5, or 6)
6
6
6
Work Region (NE, SE, NW, SW, MID)
NE
NE
NE
High School Grad Salary & Benefits
33,000
41,000
47,000
Low Risk Investment Rate (XX)
1%, 4%, 7%
1%, 4%, 7%
1%, 4%, 7%
FIGURE 10-11
Question 4 input data
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