Payback period in capital budgeting refers to the period of time required for the return on an investment to “repay” the sum of the original investment. For example, a $1000 investment which returned $500 per year would have a two year payback period. The time value of money is not taken into account.

Way back in 2008, I wrote about using SUMPRODUCT to duplicate the functionality of SUMIFS which was introduced in Microsoft Excel 2007. SUMPRODUCT is a powerful excel function and is more commonly used to multiply two arrays. Let’s first understand the syntax of SUMPRODUCT.

Two weeks, we looked at the syntax of VLOOKUP, INDEX and MATCH. Last weeks tutorial should have walked you through the basics of VLOOKUP. In this post, we’ll use a similar file from the VLOOKUP tutorial to find a value from the table using INDEX and MATCH.

If you haven’t had a chance yet, please go through the VLOOKUP tutorial. Alternatively, if you’re ready to jump right into INDEX/MATCH, then let’s get started.

Firstly, create the above table in Excel. I’ll be using Excel 2010 in my example. You can also download the examples file before you proceed. The file contains a Questions sheet which you can practice in and a Solutions sheet with the answers.

If you haven’t had a chance to review the basic syntax of the functions, please do read this post before you continue.

Firstly, let’s create the above table in Excel. So whip up the installation of Excel you have. You can use either of Excel 2003, Excel 2007 or Excel 2010. I’ll be using Excel 2010 in my example. Download the examples file before you proceed. The file contains a Questions sheet which you can practice in and a Solutions sheet as well.

If you haven’t had a chance to review the basic syntax of the functions, please do read this post before you continue.

VLOOKUP is the easier function of the two to use and understand. It takes just 4 parameters and we’ll be using all 4. And, we’ll look at 4 options of using VLOOKUP.

Excel has several lookup and reference functions. The main purposes of most of the plugins is to lookup some cell or cells from a set of data (usually presented in a table). Of these, the most popular ones are VLOOKUP, INDEX and MATCH.

If you have lost your password for any MS Word or Excel document and are unable to recover it, try using this Free Word / Excel Password Recovery application. It’s a freeware product and all you need to do is install it, open the file that you need to recover. Choose the character set “a to z” and the expected lenght of your password and click GO.

One requirement that you will see as part of a classroom environment is the necessity to create groups. One option is to perform this process manually. This is OK if you have ten people.

If you’ve forgotten the password to edit the Excel file Excel Password Remover 2008 can come to your rescue. Excel Password Remover is a FREE Excel add-in that removes/cracks sheet and workbook password protection in ExcelÂ®. This program will remove passwords of any length, also passwords containing special characters.

Three weeks back I covered creating Single Variable Data Tables in Excel. As promised, in this tutorial I will cover creating a two variable data table. This tutorial assumes that you have read the earlier one and are comfortable with creating a single variable data table.

Data Tables is also an advanced topic in Microsoft Excel that falls under the category of What-If Analysis. What-If or Sensitivity Analysis is carried out to study the variation of the output to changes in the input variable.

Consider a case of compound interest, where you invest a certain amount of money in a bank deposit and the amount is compounded every year.

Formula for calculating compound interest:

A = P * (1 + r/n) ^ nt

Where:

P = principal amount (initial investment)

r = annual interest rate (as a decimal)

n = number of times the interest is compounded per year

t = number of years

A = amount after time t

Now, if suppose we want to see what the final amount will be at different interests rates, we can quickly use a data table for the same.