FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Introduction to Spreadsheet Modeling

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

Trace Dependents and Trace Precedents are Formula Auditing commands.

A) True
B) False

Correct Answer

verified

Show Answer

Question 2

Essay

Review LaterAdd Note

Review Later

Exhibit 2-2 A small sporting goods company is considering investing $2000 in a project at the start of year 1 that will produce volleyballs over the next five years. The company plans to produce and sell 200 volleyballs in the first year, and expects that volume to grow by 10% each year thereafter. The unit selling price forecast the company has developed is $20 in year 1, $22 in year 2, $25 in year 3, $28 in year 4, and $31.50 in year 5. Variable costs are forecast to be $15 per unit produced, and there will be a fixed overhead cost in each year of $500. (Unless otherwise indicated, assume that all cash flows occur at the end of the year.) -Refer to Exhibit 2-2. Suppose instead that the company thinks it can reduce its variable cost rate. What rate would produce an NPV of $10,000?

Correct Answer

verified

Using Excel's Goal Seek functi...

View Answer

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

Which of the following is not one of the required arguments for a VLOOKUP function?

Many models are built for the purpose of permitting experimentation with various scenarios.

Exhibit 2-2 A small sporting goods company is considering investing $2000 in a project at the start of year 1 that will produce volleyballs over the next five years. The company plans to produce and sell 200 volleyballs in the first year, and expects that volume to grow by 10% each year thereafter. The unit selling price forecast the company has developed is $20 in year 1, $22 in year 2, $25 in year 3, $28 in year 4, and $31.50 in year 5. Variable costs are forecast to be $15 per unit produced, and there will be a fixed overhead cost in each year of $500. (Unless otherwise indicated, assume that all cash flows occur at the end of the year.) -[Part 1] Refer to Exhibit 2-2. Use the graphing function in Excel to construct a scatterplot of forecasted price versus time, and fit a linear trendline to the data. What are the coefficients of the linear model, and what is the MAPE of a linear model forecast, compared to the company's forecast?

Exhibit 2-2 A small sporting goods company is considering investing $2000 in a project at the start of year 1 that will produce volleyballs over the next five years. The company plans to produce and sell 200 volleyballs in the first year, and expects that volume to grow by 10% each year thereafter. The unit selling price forecast the company has developed is $20 in year 1, $22 in year 2, $25 in year 3, $28 in year 4, and $31.50 in year 5. Variable costs are forecast to be $15 per unit produced, and there will be a fixed overhead cost in each year of $500. (Unless otherwise indicated, assume that all cash flows occur at the end of the year.) -Refer to Exhibit 2-2. Use the above information to develop a simple cash flow proforma sheet, and then apply Excel's NPV function to calculate the project value assuming a 10% discount rate. What is your answer?

Which of the following is a useful tool for understanding and troubleshooting a spreadsheet model?

In Excel terminology, the unknown value used in Goal Seek is called the input cell.

A shortcut for establishing absolute references is pressing the F9 key.

Goal Seek is a means for answering a large number of what-if questions quickly and easily.

Much of the power of spreadsheet models derives from their flexibility.

The Excel tool for solving one equation with one unknown is:

To evaluate which of a set of curves fits the data best, we can use:

Which of the following is not one of the components of a mathematical model?

In general, any cash flow occurring at the beginning of the first time period must be placed outside the NPV function.

A chart is typically much more informative to a business manager than the table of numbers it is based on.

Exhibit 2-2 A small sporting goods company is considering investing $2000 in a project at the start of year 1 that will produce volleyballs over the next five years. The company plans to produce and sell 200 volleyballs in the first year, and expects that volume to grow by 10% each year thereafter. The unit selling price forecast the company has developed is $20 in year 1, $22 in year 2, $25 in year 3, $28 in year 4, and $31.50 in year 5. Variable costs are forecast to be $15 per unit produced, and there will be a fixed overhead cost in each year of $500. (Unless otherwise indicated, assume that all cash flows occur at the end of the year.) -[Part 2] Refer to Exhibit 2-2. Use the same scatterplot constructed for the previous question, fit an exponential trendline to the data. What are the coefficients of the exponential model, and what is the MAPE of an exponential model forecast, compared to the company's forecast?

Exhibit 2-1A t-shirt company is planning a production run for an event where the attendance (and thus demand for t-shirts) is uncertain. The event planners have indicated that they think the attendance will be 500, 750 or 1000, with probabilities of 30%, 50% and 20% respectively. The company must pre-order the blank t-shirts (cost=$5 per shirt) and it can sell finished shirts for $12 apiece. Any finished shirts that cannot be sold at the event can be sold for $2 apiece to a used clothing vendor. -Refer to Exhibit 2-1. What Excel function is useful for calculating the expected value of demand for t-shirts? What is the expected demand?

Exhibit 2-1A t-shirt company is planning a production run for an event where the attendance (and thus demand for t-shirts) is uncertain. The event planners have indicated that they think the attendance will be 500, 750 or 1000, with probabilities of 30%, 50% and 20% respectively. The company must pre-order the blank t-shirts (cost=$5 per shirt) and it can sell finished shirts for $12 apiece. Any finished shirts that cannot be sold at the event can be sold for $2 apiece to a used clothing vendor. -Refer to Exhibit 2-1. Suppose now that blank t-shirts can only be ordered from the wholesale vendor in batches of 50? How many t-shirts should the company order?

Which of the following is not one of the features that can improve the readability of a spreadsheet model?