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BUSINESS MATHEMATICS & STATISTICS

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LECTURE 18 Review Lecture 17 Solve two linear equations with two unknowns

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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)

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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

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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.

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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

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EXCEL FUNCTIONS FINANCIAL ANALYSIS XNPV Returns the net present value for a schedule of cash flows that is not necessarily periodic

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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

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EXCEL FUNCTIONS FINANCIAL ANALYSIS SLN Returns the straight-line depreciation of an asset for one period SYD Returns the sum-of-years' digits depreciation of an asset for a specified period

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EXCEL FUNCTIONS FINANCIAL ANALYSIS VDB Returns the depreciation of an asset for a specified or partial period using a declining balance method XIRR Returns the internal rate of return for a schedule of cash flows that is not necessarily periodic

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LINEAR EQUATIONS Solve 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

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SOLVING LINEAR EQUATIONS 2x – 3y = – 6 x + y = 2 Solve for y 2x – 3y = – 6 2x + 2y = 4 -5y = -10 Y = 2

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SOLVING LINEAR EQUATIONS 2x – 3y = – 6 x + y = 2 Solve for x Substitute y = 2 2x – 3(2) = – 6 2x - 6 = - 6 2x = 0 x = 0

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SOLVING LINEAR EQUATIONS 2x – 3y = – 6 x + y = 2 Solve for x Substitute y = 2 2x – 3(2) = – 6 2x - 6 = - 6 2x = 0 x = 0

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BUSINESS MATHEMATICS & STATISTICS

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