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help with two way table and Vlookup

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  1. #1
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    help with two way table and Vlookup

    Could any help in solving those two Excel questions?

    2. A project requires an upfront investment of $175,000. Your boss
    would like you to create a table that shows the impact of various sales growth
    rates and selling price growth rates on the Net Present Value. You are to
    assume that there will be eight years of cash flows from the investment. The
    first year sales are assumed to be 1000 units at a price of $105 per unit. The
    selling price is $105/unit during year 1. The variable cost per unit is assumed
    to remain at $42 for each of the next nine years. The fixed costs are $13,000
    per year. Your boss wants you to calculate the NPV for annual sales growth
    rates of 0.0 to 0.1 in increments of 0.01; the selling price growth rate range is
    0.0 to 0.10 in increments of 0.01 (i.e., 1 percent). The cost of capital is 15%.
    Construct a two-way data table to generate the results.
    2.JPG

    To generate a random number from a discrete probability distribution, you
    can use VLOOKUP. Say that the random variable has the following
    probability distribution:
    Random Variable Probability Cumulative Probability
    0 | 0.1| 0.1
    1 |0.2 |0.3
    2 |0.3 |0.6
    3 |0.25|
    4 |0.1 |
    5 |0.05|

    The random variable is one of the values from 0 to 5 with the probabilities
    given above. The cumulative probability is the probability that the random
    variable is less than or equal to that value. Thus, the cumulative probability
    for random variable value 2 is the probability of 0, 1, and 2, for a total of 0.6.
    To generate a random number from that probability distribution, you begin
    with a number between 0 and 1. Then you check to see which interval of the
    cumulative probability that the number falls into. For example, the first
    interval is from zero up to 0.1 (not including 0.1) and would correspond to the
    random variable value of 0. The second interval is from 0.1 (including 0.1) to
    0.3 (but not including 0.3) and corresponds to a random variable value of 1.
    For example, say the number is 0.25. Since 0.25 is greater than or equal to 0.1
    and less than 0.3, you assign the value of 1 to the random variable. If the
    number had been 0.3, you assign the value of 2 to the random variable. Use
    the VLOOKUP function to assign the value of the random variable to a
    number between 0 and 1. The number between 0 and 1 should be entered into
    cell A5. The random variable value that is assigned should be in cell A7.
    Remember that the leftmost column of the table must be the one whose values
    are used to “look in” based on the first argument. Also, you may have to
    restructure the table to have it work properly.

    5.jpg

  2. #2
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    Re: help with two way table and Vlookup

    This looks a homework question to me.

    If so see the forumrules about homework.

    for a solution look at the formula index/match
    Notice my main language is not English.

    I appreciate it, if you reply on my solution.

    If you are satisfied with the solution, please mark the question solved.

    You can add reputation by clicking on the star * add reputation.

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