BUSINESS MATHEMATICS & STATISTICS
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BUSINESS MATHEMATICS
&
STATISTICS
LECTURE 18Review Lecture 17
Solve two linear equations with two unknowns
DB EXAMPLES
• =DB(A2,A3,A4,1,7) Depreciation in first year, with only 7 months calculated (186,083.33)
• =DB(A2,A3,A4,2,7) Depreciation in second year (259,639.42)
• =DB(A2,A3,A4,3,7) Depreciation in third year (176,814.44)
• =DB(A2,A3,A4,4,7) Depreciation in fourth year (120,410.64)
• =DB(A2,A3,A4,5,7) Depreciation in fifth year (81,999.64)• =DB(A2,A3,A4,6,7) Depreciation in sixth year
(55,841.76) • =DB(A2,A3,A4,7,5) Depreciation in seventh year, with
only 5 months calculated (15,845.10)
EXCEL FUNCTIONS FINANCIAL ANALYSIS
PV Returns the present value of an investment
NPV Returns the net present value of an investment based on
a series of periodic cash flows and a discount rate
PV(rate,nper,pmt,fv,type)
Rate interest rate per period Nper total number of payment periods in an annuity
Pmt payment made each period and cannot change over the life of the annuity
Fv future value, or a cash balance you want to attain after the last payment is made
Type number 0 or 1 and indicates when payments are due.
NPV
NPV(rate,value1,value2, ...)
Rate
rate of discount over the length of one period
Value1, value2, ...
1 to 29 arguments representing the payments and income
EXCEL FUNCTIONS FINANCIAL ANALYSIS
XNPV Returns the net present value for a schedule of cash flows
that is not necessarily periodic
XNPV
XNPV(rate,values,dates)
Rate
discount rate to apply to the cash flows
Values
series of cash flows that corresponds to a schedule of payments in dates
Dates
schedule of payment dates that corresponds to the cash flow payments
EXCEL FUNCTIONS FINANCIAL ANALYSIS
SLN Returns the straight-line depreciation of an asset for one
periodSYD
Returns the sum-of-years' digits depreciation of an asset for a specified period
EXCEL FUNCTIONS FINANCIAL ANALYSIS
VDB Returns the depreciation of an asset for a specified or
partial period using a declining balance methodXIRR
Returns the internal rate of return for a schedule of cash flows that is not necessarily periodic
LINEAR EQUATIONSSolve two linear equations with
two variables
Solve problems that require setting up linear equations with two variables
Perform linear Cost-Volume-Profit and break-even analysis employing:
The contribution margin approach
The algebraic approach of solving the cost and revenue functions
SOLVING LINEAR EQUATIONS
2x – 3y = – 6 x + y = 2Solve for y
2x – 3y = – 62x + 2y = 4
-5y = -10Y = 2
SOLVING LINEAR EQUATIONS
2x – 3y = – 6 x + y = 2Solve for x
Substitute y = 22x – 3(2) = – 62x - 6 = - 6
2x = 0x = 0
SOLVING LINEAR EQUATIONS
2x – 3y = – 6 x + y = 2Solve for x
Substitute y = 22x – 3(2) = – 62x - 6 = - 6
2x = 0x = 0
BUSINESS MATHEMATICS
&
STATISTICS
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