Using IRR with Data Tables – Modeling Cash-flow Scenarios in Excel
Do you want to simulate multiple cash-flow scenarios and calculate the rate of return? Then this article is for you. In this page, learn how to,
- Introduction to IRR & XIRR functions
- Calculate rate of return from a set of cash-flows with XIRR
- Simulating purchase or terminal value changes with data tables
- Apply conditional formatting to visualize the outputs
- Common issues and challenges faced when using XIRR
How to predict cricket scores [Excel + Machine Learning]
Can we predict cricket match score in Excel? Using machine learning, ensemble modeling, multiple regression and Excel formulas we can. This tutorial explains how.
Which power plan is best for me? Excel for everyday problems
We had to switch power providers soon, so I started reviewing the options. There are heaps of providers in New Zealand and each offer a ton of different plans. Some offer welcome bonus or credit worth up to $ 200. Other offer straight forward rates. Some others offer discount if you sign up for both electricity and gas with them. So how do you decide which one is better for you?
Using Excel of course.
The result is awesome. I ended up saving more than $1000 with a simple model. Puzzled? Curious? Check out this short but powerful video tut.
Modelling Inventory Run Rate & Cash Flows using Excel
Imagine you run an office furniture company. You want to stop reordering two brands of furniture – Relaxer (a type of chair) and Boca Top (a type of table). You currently have 20,000 Relaxer chairs and 5,000 Boca Tops. These are valued at $200,000 and $100,000 respectively. When sold, they will yield $100,000 and $25,000 gross profit. You are hoping to sell them off in 2 or 3 years. You forecast that we can sell off these as per some yearly schedule.
You need to analyze this and prepare a cash flow model.
Let’s learn how to answer such open ended questions using various analysis techniques in Excel.
Sara’s Copy Shop – Break even analysis and what-if modeling in Excel [Videos]
Last week, I asked you to share an analysis problem that you couldn’t solve in Excel. We got quite a few very interesting problems in comments and email. In this post, let me explain how to solve Sara’s copy shop problem using Excel.
What is Sara’s copy shop problem?
Thanks to Caroline who posted this problem.
Sara wants to open a copy shop. Each copier costs $5,000 per year to lease. The rent & other fixed costs per month are $300. There is a $0.02 variable cost per copy. Each copier can print up to 100,000 copies per year. She plans to charge $0.11 per copy from her customers. Sara estimates that the demand can be any of the 4 values – 500, 1000, 1500 or 2000 copies per day.
- Build a model to estimate profit per given number of copiers & demand values
- Find the mix of copiers & demand values that can make maximum profit for Sara (copiers – 1 to 6, demand – 500 to 2000)
Tell me about an analysis problem that you couldn’t solve with Excel?
Time for a quick show & tell.
Tell me about an analysis problem that you couldn’t solve with Excel?
It can be because you didn’t know how to solve the problem or Excel isn’t the tool for it or any other reason.
Go ahead and speak up. Post your tricky analysis problems in the comments section.
18 ways to turn analysis projects into a nightmare
Every week, we read news about failed analysis projects. If you listen carefully, you can hear the grunts, screams and curses of thousands of analysts all over the world about their analysis nightmares.
At Chandoo.org, we talk a lot about best practices for data analytics. So today, let’s peek in to the dark side and understand the mistakes that can turn your analysis project into a nightmare.
There are 3 parts in any analysis project
To understand these worst practices in analysis world, first let’s break analysis projects in to 3 parts.
- Requirements
- Data Structure
- Tools & Construction
Let’s deep dive in to each area of the analysis projects to see what can go wrong.