Engineering Economic Analysis

(Chris Devlin) #1
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Copy Command


Formulasmust begin with an =, such as =3*4A2or =BI+B2. They can include many
funptions-financial, statistical, trigonometric, etc. (and others can be defined by the user).
The formula for the "current" cell is displayedin the formula bar at the top of the spreadsheet.
The value resulting from the formula is displayed in the cell in the spreadsheet.
Often the printed out spreadsheet will be part of a report or a homework assignment
and the formulas must be explained. Here is an easy way to place a copy of the formula in
an adjacent or nearby cell. (1) Convert the cell with the formula to a label by inserting a
space before the=sign. (2) Copy that label to an adjacent cell by using cut and paste. Do
not drag the cell to copy it, as any formula ending with a number (even an address like B4)
will have the number automatically incremented.(3) Convertthe original formula back into
a formula by deleting the space.

Defining Variables in a Data Block


The cell AI, top left comer, is the HOME cell for a spreadsheet. Thus, the top left area is
where the data block should be placed. This data block should have every variable in .the
spreadsheet with an adjacent label for each. This data block supports a basic principle of
good spreadsheet modeling, which is to use variables in your models.
The data block in Example A-I containsentered data-the loan amount (AI), the
number of payments (A2), and the interest rate (A3), andcomputed data-the payment
(A4). Then instead of using the loan amount of $5000 in a formula, the cell reference Al
is used. Even if a value is only referenced once, it is better to include it in the data block
By using one location to define each variable, you can change any value at one place in the
spreadsheet and have the entire spreadsheet instantly recomputed.
Even for simple homework problems you should use a data block.


  1. You may be able to use it for another problem.

  2. Solutions to simple problems may grow into solutions for complex problems.

  3. Good habits, like using data blocks, are easy t~ maintain once they are established.

  4. It makes the assumptions clear if you've estimated a value or for grading.


In the real world, data blocks are even more important. Most problems are solved more
than once, as more and more accurate values are estimated. Often the spreadsheet is revised
to add other variables, time periods, locations,etc. Without data blocks, it is hard to change
a spreadsheet and the likelihood of missing a required change skyrockets.
If you want your formulas to be easier to read, you can name your variables. Note:
In current versions of Excel, the cell's location or name is displayed at the left of the
formula bar. Variable names can be entered here. They will then automatically be applied
if cell addresses are entered by the point and click method. If cell addresses are entered
as A2, then A2 is what is displayed. To change a displayed A2, to the name of the cell
(LoanAmount), the process is to click on insert, click on name, click on apply, and then
select the names to be applied.

tPYCOMMAND


The copy command and relative/absoluteaddressingmake spreadsheetmodels easy to build.
If the range of cells to be copied contains only labels, numbers, and functions, then the copy


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