cases and places Excel Chapter 4.pdf

Cases and Places EX 335Apply your creative thinking and problem solving skills to design and implement a solution.o EnsrrR "MoRr Drrrrcurro 1: Break-Even AnalysisYou can calculate the number of units you must sell to break even (break-even point) if you know thefixed expenses, the price per unit, and the expense (cost) per unit. You have been hired by FairviewClothing to create a data table that analyzes the break-even point for prices between $8.00 and 514.25in increments of $0.25. The following formula determines the break-even pointrExpense per Unit)Break-Even Point = Fixed Expenses / (Price per Unit -Assume Fixed Expenses = $800,000; Price per Unit = $8.50; and Expense per Unit = $4.10. Enter thedata and formula into a worksheet and then create the data table. Use the Price per Unit as the inputcell and the break-even value as the result. For a price per unit of$10.50, the data table should show abreak-even point of 125,000 units. Protect the worksheet.. 2: Salvage Value of an AssetJack Hollinsworth, owner of Hollinsworth Bakery recendy purchased a new commercial-sized ovenfor his business. Jack wants a worksheet that uses the financial function SLN to show the oven'sstraight-line depreciation and a formula to determine the annual rate of depreciation. StraightJinedepreciation is based on an asset's initial cost, how long it can be used (called useful life), and the priceat which it eventually can be sold (called salvage value). Jack has supplied the following information:Cost = 5124,857; Salvage = $30,000; Life = B years; and Annual Rate of Depreciation = SLN / CostJack is not sure what selling price the oven will bring in B years. Create a data table that showsstraight-line depreciation and annual rate of depreciation for salvage from $25,000 to $35,000 in $500increments. Use Excel Help to learn more about the SLN function. Protect the worksheet.o 3: Saving for CollegeYour friends' dream for their one-year-old son is that one day he will attend their alma mater, TeslaUniversity. For the next 15 years, they plan to make monthly pagnent deposits to a 529 CollegeSavings plan at a local bank. The account pays 45% annual interest, compounded monthly. Createa worksheet for your friends that uses a financial function to show the future value (F! of theirinvestment and a formula to determine the percentage of the college's tuition saved. They havesupplied the following information:Out of State Annual Tuition = $40,000; Rate (per month) = 4. 5o/" / 12; Nper (number ofmonthly palirnents) = 75 " 12; Pmt (payment per period) = $375; and percentage of Tlition Saved= FV / Tuition for four yearsYour friends are not sure how much they will be able to save each month. Create a data table thatshows the future value and percentage of tuition saved for monthly papnents from $250 to $850, in$50 increments. Protect the worksheet.Continued >

EX 336 #He*B {F:af3t*r"r&, Financial Functions, Data Tables, and Amortization Schedulescases and Places continuedo o 4 Saving for a Dream HomeMake lt PersonalFind a home in yorlr area that you would like to someday purchase. Based on the estimated currentprice of the home, determine how much money you need to save each month so that in seven years,you have enough to make a down paynent of I0% of the current estimated value. Assume that you cansave the money in an account that is getting a 5.7 5% return. Create a worksheet that determines howmuch you have to save each month so that in seven years the value of the account is 10% of the currentestimated vahte. Hint: Use the FV function with a monthly savings of $400. Then use the Goal Seekcommand to determine the monthly savings amount. Protect the worksheet.o o 5 Paying Off a Car LoanWorking liogetherJackie Waltrip is retiring from her teaching job, but before leaving her job, she wants to settle heraccount with her union's credit union. Jackie has seven years remaining on a ten_yer car loan, withan inrerest rate of 10.25% and a monthly pa1'ment of $450.00. The credit union is willing to acceptthe present value (P$ of the loan as a payoff. Develop an amortization schedule that shows how muchJackie must pay at the end of each of the ten years. As a team) use Excel Help to learn more aboutpresent rral.re. Th.n, design and create a worksheet that includes the beginning and ending balance, the,-oont paid on the principal, and the interest paid for years four through ten. Because she has paid forthe three years already, determine only the ending balance (present value) for year three. Submit theworksheei as requested by your instructor and include a one-page paper on one of the following topics:(1) error checking; (2) elements you can protect in a workbook; or (3) present value.