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Purchase vehicle Purchase Analysis Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Description 2016 Ford Mustang Convertible 2014 Honda Accord Hybrid 2014 Ducati Diavel Strada 2016 Chevy Colorado Vehicle Type Passenger Passenger Motorcycle Truck Seller dealer private seller private seller dealer Average Highest Lowest Price $27,800 $20,463 $14,250 $20,100 Price MPG City MPG City MPG Highway MPG Highway Average MPG Average MPG Yearly Costs Maintenance/Year $600 $300 $500 $500 Maintenance/Year Registration Fee Registration Fee Insurance/Year $1,000 $700 $1,500 $600 Insurance/Year Need Loan? Amount to Borrow Amount to Borrow APR 3.20% 1.90% 5.90% 2.90% APR Years Years Monthly Costs Loan Payment Loan Payment Gas Gas Maintenance/Month Maintenance/Month Insurance/Month Insurance/Month Total Monthly Total Monthly Affordable?
Data Vehicle Purchase Assumptions $8,000 Total Cash Available for Vehicle Purchase $500 Total Monthly Amount Available to Pay for Operating Vehicle 600 Number of Miles I Expect To Drive Each Month $2.50 Gas Price Per Gallon Registration Fee Lookup Table column # 1 2 Cargo Van 100 Farm Vehicle 68 Motor Home 100 Motorcycle 60 Passenger 100 Trailer 30 Truck 100 A Skills Approach: Excel 2016 Chapter 3: Using Formulas and Functions 1 | Page Challenge Yourself 3.3 Last Updated 3/19/18 Challenge Yourself 3.3 In this project you will complete a vehicle shopping workbook to compare the purchase of several vehicles. After completing the project, you can make a copy of the file and use it to compare vehicle purchases you are considering for yourself.
Be sure to save your work often! Skills needed to complete this project: • Naming Ranges of Cells • Calculating Averages • Finding Data Using the VLOOKUP Function • Working with Named Ranges • Using the Function Arguments Dialog to Enter Functions • Using the Logical Function IF • Calculating Loan Payments Using the PMT Function • Creating Formulas Referencing Data from Other Worksheets • Displaying and Printing Formulas • Finding Errors Using Trace Precedents and Trace Dependents • Finding Minimum and Maximum Values • Using Formula AutoComplete to Enter Functions • Updating Named Ranges with the Name Manager • Editing and Deleting Names with the Name Manager • Checking Formulas for Errors 1.
Open the start file EX2016-ChallengeYourself-3-3. The file will be renamed automatically to include your name. Change the project file name if directed to do so by your instructor, and save it. 2. If the workbook opens in Protected View, click the Enable Editing button in the Message Bar at the top of the workbook so you can modify it.
3. The registration fee information in cells B11:C17 on the Data sheet will be used in lookup formulas later in this project. Name the range RegistrationFees to make it easier to use later. 4. Return to the Purchase worksheet.
5. Calculate the average MPG for each vehicle. a. Enter a formula in cell C10 using the AVERAGE function to calculate the average value of C8:C9. Use only one argument. b. Copy the formula to the appropriate cells for the other vehicles. c.
Excel will detect a possible error with these formulas. Use the SmartTag to ignore the error. Hint: Use the SmartTag while cells C10:F10 are selected and the error will be ignored for all the selected cells. 6. Calculate the registration fee for each vehicle. a.
Enter a formula in cell C13 to look up the registration fee for the first vehicle. Use the vehicle type in cell C4 as the Lookup_value argument. Use the RegistrationFees named range as the Table_array argument. The registration fees are located in column 2 of the data table. Require an exact match. b.
Copy the formula to the appropriate cells for the other vehicles. Step 1 Download start file A Skills Approach: Excel 2016 Chapter 3: Using Formulas and Functions 2 | Page Challenge Yourself 3.3 Last Updated 3/19/. Determine whether or not you will need a loan for each potential purchase. a. In cell C15, enter a formula using an IF function to determine if you need a loan. Your available cash is located on the Data sheet in cell A3.
If the price of the car is less than or equal to your available cash, display "no". If the price of the car is more than your available, cash, display "yes". Use absolute references where appropriate—you will be copying this formula across the row. b. Copy the formula to the appropriate cells for the other vehicles. 8.
Calculate how much you would need to borrow for each purchase. a. In cell C16, enter a formula to calculate the price of the vehicle minus your available cash (from cell A3 in the Data worksheet). Use absolute references where appropriate—you will be copying this formula across the row. b. Copy the formula to the appropriate cells for the other vehicles. 9.
Calculate the monthly payment amount for each loan. a. In cell C20, enter a formula using the PMT function to calculate the monthly loan payment for the first vehicle. • Hint: Divide the interest rate by 12 in the Rate argument to reflect monthly payments. • Hint: Multiply the number of years by 12 in the Nper argument to reflect the number of monthly payments during the life of the loan. • Hint: Use a negative value for the loan amount in the Pv argument so the payment amount is expressed as a positive number. b. Copy the formula to the appropriate cells for the other vehicles. 10. Compute the monthly cost of gas. a.
In cell C21, enter a formula to calculate the number of miles you expect to drive each month. Divide the value of number of miles (cell A5 from the Data sheet) by the average MPG for the vehicle multiplied by the price of a gallon of gas (cell A6 from the Data sheet). b. Copy the formula to the appropriate cells for the other vehicles. c. If cells D21:F21 display an error or a value of 0, display formulas and check for errors. d. If you still can't find the error, try displaying the precedent arrows. e.
Hint: The references to the cells on the Data sheet should use absolute references. If they do not, the formula will update incorrectly when you copy it across the row. 11. Compute the monthly cost of maintenance. a. In cell C22, enter a formula to calculate the monthly maintenance cost: Divide cell C12 by 12. b.
Copy the formula to the appropriate cells for the other vehicles. 12. Compute the monthly cost of insurance. a. In cell C23, enter a formula to calculate the monthly insurance cost: Divide cell C14 by12. b. Copy the formula to the appropriate cells for the other vehicles.
A Skills Approach: Excel 2016 Chapter 3: Using Formulas and Functions 3 | Page Challenge Yourself 3.3 Last Updated 3/19/. In cells C24:F24, compute the total the monthly cost for each vehicle. 14. Determine which vehicles are affordable. a. In cell C26, enter a formula using the IF function to display "yes" if the total monthly cost (cell C24) is less than or equal to the total monthly amount available for vehicle expenses (Data sheet, cell A4).
Display "no" if the total monthly cost is not less than or equal to the total monthly amount available. b. Copy the formula to the appropriate cells for the other vehicles. c. Display formulas and use the error checking skills learned in this lesson to track down and fix any errors. 15. Complete the Analysis section using formulas with statistical functions.
Use named ranges instead of cell references in the formulas. Calculate the average, highest, and lowest values for each of the following: a. Price b. MPG City c. MPG Highway d.
Average MPG e. Maintenance/Year f. Registration Fee g. Insurance/Year h. Amount to Borrow i.
APR j. Years k. Loan Payment l. Gas m. Maintenance/Month n.
Insurance/Month o. Total Monthly Hints: • Select cells B7:F24 and use Excel’s Create from Selection command to create named ranges for each row using the labels at the left side of the range as the names. • Open the Name Manager and review the names Excel created. Notice that any spaces or special characters in the label names are converted to _ characters in the names. • To avoid typos as you create each formula, try using Formula AutoComplete to select the correct range name. 16. Before finishing the project, check the worksheet for errors.
17. Save and close the workbook. 18. Upload and save your project file. 19.
Submit project for grading.
Paper For Above instruction
This comprehensive project focuses on developing a vehicle purchasing analysis workbook using Excel 2016, emphasizing skills such as range naming, formula creation, data lookup, loan calculations, and error checking. The goal is to compare multiple vehicle options based on cost, fuel efficiency, maintenance, and financing options, helping users make informed purchasing decisions.
Initially, the project involves preparing the dataset, including vehicle descriptions, types, prices, fuel efficiencies, and associated costs like maintenance and insurance. Key preliminary steps include naming data ranges for ease of formula management and calculating basic statistics such as average MPG, which provides insight into vehicle fuel efficiency.
A critical component of the analysis involves determining whether to finance a vehicle purchase. Using IF functions, the user compares vehicle prices to available cash, indicating if a loan is necessary. Calculations for the loan amount, monthly payment using the PMT function, and detailed costs like gas, maintenance, and insurance are then performed. These computations incorporate absolute cell references to ensure formula integrity across multiple vehicle scenarios.
The project further emphasizes affordability analysis, where total monthly costs are aggregated and compared to a predefined monthly budget. Formulas evaluating whether each vehicle is financially feasible are implemented with IF statements, and errors are identified and corrected through Excel's auditing tools like trace precedents.
Finally, statistical analysis is conducted on key data points such as prices, MPG ratings, and costs, utilizing dynamic named ranges to facilitate quick summaries. This holistic approach allows users to understand the financial implications of each vehicle based on their specific budget constraints and driving expectations.
By completing this project, students gain practical experience in Excel functions, formula construction, data management, and financial analysis—skills essential for informed decision-making in vehicle purchasing scenarios.
References
- Excel 2016 Bible by John Walkenbach
- Financial Functions in Excel: A Complete Guide by Microsoft Support
- Vehicle Cost Analysis and Comparison, Automotive Data Reports (2020)
- Excel Formulas and Functions for Dummies by Ken Bluttman
- Intermediate Excel Skills: Named Ranges and Lookup Functions, TechWorld Publications
- Financial Modeling & Valuation: A Practical Guide by Paul Pignataro
- The Complete Guide to Excel’s Financial Functions by Michael Alexander
- Data Analysis in Excel by Conrad Carlberg
- Excel for Dummies by Greg Harvey
- Automotive Industry Cost Structures and Financial Planning, Industry Reports (2021)