Module 9 workbook answers

New Perspectives Excel 2016 | Module 9: SAM Project 1a The Mobile Vegan FINANCIAL TOOLS AND FUNCTIONS GETTING STARTED • Open the file NP_EX16_9a_FirstLastName_1.xlsx, available for download from the SAM website. • Save the file as NP_EX16_9a_FirstLastName_2.xlsx by changing the “1” to a “2”. o • If you do not see the .xlsx file extension in the Save As dialog box, do not type it. The program will add the file extension for you automatically. With the file NP_EX16_9a_FirstLastName_2.xlsx still open, ensure that your first and last name is displayed in cell B6 of the Documentation sheet. o If cell B6 does not display your name, delete the file and download a new copy from the SAM website. PROJECT STEPS 1. You are a part-time manager for The Mobile Vegan, a food truck catering to vegan diners in Portland, Oregon. Jessica Rosen, the owner of the business, wants to expand by adding other food trucks in Portland and the surrounding area. Whether she purchases new trucks or takes over an existing food truck business with an established clientele, she needs a loan to cover the cost of the trucks. She has asked for your help updating the workbook she created to analyze the loan information and forecast sales. Switch to the Loan Scenarios worksheet, and then calculate the monthly payment for the Add 1 Truck scenario as follows: 2. 3. a. In cell D11, enter a formula using the PMT function to calculate the monthly payment for a loan. b. Use the inputs listed under the Add 1 Truck loan scenario in cells D5, D7, and D9. (Hint: The result will be displayed as a negative number to reflect the negative cash flow of a loan payment.) Calculate the monthly interest rate for the Add 2 Trucks scenario as follows: a. In cell E7, enter a formula using the RATE function to calculate the monthly interest rate for a loan. b. Use the inputs listed under the Add 2 Trucks loan scenario in cells E9, E11, and E5. (Hint: Assume the present value of the loan is the loan amount shown in cell E5.) Calculate the loan amount for the Add 3 Trucks scenario as follows: New Perspectives Excel 2016 | Module 9: SAM Project 1a 4. 5. 6. a. In cell F5, enter a formula using the PV function to calculate the loan amount. b. Use the inputs listed under the Add 3 Trucks loan scenario in cells F7, F9, and F11. Calculate the number of months Jessica needs to pay back a loan for an existing food truck business as follows: a. In cell G9, enter a formula using the NPER function to calculate how many months it would take to pay back a $500,000 loan. b. Use the inputs listed under the Take Over loan scenario in cells G7, G11, and G5. Switch to the Amortization worksheet. Calculate the cumulative interest for a loan for one food truck as follows: a. In cell C17, enter a formula using the CUMIPMT function to calculate the cumulative interest paid on the loan after the first year (payment 1 in cell C15 through payment 12 in cell C16) when the payments are made at the end of the period. Use 0 as the type argument in your formula. b. Use absolute references for the rate, nper, and pv arguments. c. Use relative references for the start and end arguments. d. Copy the formula from cell C17 to the range D17:G17 to calculate the interest paid in Years 2–5. Calculate the cumulative principal for a loan for one food truck as follows: a. In cell C18, enter a formula using the CUMPRINC function to calculate the cumulative principal paid in the first year (payment 1 in cell C15 through payment 12 in cell C16) when the payments are made at the end of the period. Use 0 as the type argument in your formula. b. Use absolute references for the rate, nper, and pv arguments. c. Use relative references for the start and end arguments. d. Copy the formula from cell C18 to the range D18:G18 to calculate the principal paid in Years 2–5. 7. In cell H18, use the Error Checking command to identify the error in the cell, and then correct the error.