Excel

Payback Period - Question

How to calculate Payback Period in Excel

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.

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INDEX MATCH Step 1

Excel Tutorial: INDEX MATCH primer

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.

Source table

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.

Read More »Excel Tutorial: INDEX MATCH primer

VLOOKUP Step1

Excel Tutorial: VLOOKUP primer

Last week, I introduced you to VLOOKUP, INDEX and MATCH. In this post, we’ll use VLOOKUP to find a value from the table.

Source table

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.

Read More »Excel Tutorial: VLOOKUP primer

Recover MS Word and MS Excel password Easily

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.

Data Tables in Excel tutorial

In my last Excel Tutorial, I covered using SUMIFS and SUMPRODUCT.

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.

Read More »Data Tables in Excel tutorial