MBA501A Excel Spreadsheet Assignment 2

Marketing and Information Systems

Fall 2015
Course: MBA501A Management Information Systems
This project is divided into two sections. Use the Excel file provided on Desire2Learn to submit
both parts of the homework. Be sure to label the corresponding tabs correctly. The first part of
the project will require analyzing sample data and using pivot tables to answer basic business
questions. The second part of the assignment makes use of the financial functions that we have
learned in class.
1. Download the File MBA501 - Excel 2 Data.xls from Desire2Learn.
2. Rename the file with your name, following the format from the class syllabus. (2 pts)
PART 1 Pivot Tables
Auto Rental Data 20 pts.
1. Using the data from the Auto Rental Data worksheet, create the necessary pivot tables to
answer the following questions.
2. You are managing a location for a car rental agency and based on your 1st quarter car rentals
are developing a strategy for which cars to promote during the 2nd quarter. Using pivot tables
or Sub-Totals, create new worksheets as appropriate and answer the questions below.
Highlight your answers for each question using color, in either the Sub-Totals or Pivot Table
(whichever you have chosen).
3. Our company is most profitable when cars are rented and off the lot. What car size is has the
longest rental periods? This is not a sum of the days, but rather finding out the car model
that has the longest rental period.
4. We would like to maximize our Credit Card sales over the Account sales, as the credit card
payments are immediate. Which transaction type, Business or Personal should we promote,
assuming we want to promote the type that sells the most?
5. Because the subcompact cars cost less per day, your colleague that rents the subcompact cars
makes the bold statement that he has higher volume of rentals than you. You are responsible
for rentals of luxury cars. Is she correct?
6. Our company would like to promote Personal rentals. Assuming we would like to rent the
cars that are most popular in the Personal rentals, what two car types should be fairly easy to
promote?

MBA501A Excel Spreadsheet Assignment 2

Real Estate Data 20 pts.
1. Using the data from the Real Estate Data worksheet, create the necessary pivot tables to
answer the following questions.
2. You are managing a large realtor firm and based on the data in this worksheet, you are trying
to connect people that have been relocated to the area with the best match in location, realtor,
etc. Create a pivot table using a separate worksheet and label appropriately. You should
have two (2) pivot tables or Sub-Totals worksheets total, one each to answer each of the 2
questions below.
3. If my customer would like to look at the town American Fork, who is the realtor that is likely
to know the area the best, e.g., has the most sales in that area?
4. We have a client that is looking at the top end of the market. If price is an indicator of the
quality of the market, e.g., high price = high quality, which 2 towns should we recommend
they look at?
5. We have a client just starting their career and they would need to look at a starter, lower price
home. Which realtor is likely to know the lower end of the market, the best?
6. Based on sales volume, which two (2) realtors would we suggest for finding a house in the
most popular town, i.e., town with the most sales.?
PART II Financial Functions (60%)
Create a worksheet in the Excel workbook you used for Part I. Please answer the following
questions, showing your work and providing any justification for your answers using the
financial functions from class, e.g., NPV, PV, IPMT, etc.
1. You are negotiating a 6 year contract with an estimated value of $800,000 revenue for your
company. Assuming the annual interest rate stays constant, which of the following is a
better revenue choice, using the current value of the payment streams, for your company?
Assume an annual interest rate of 5%.
Option 1
Date
Payment
Jan 1, 2016
200,000
Jan 1, 2017
200,000
Jan 1, 2018
100,000
Jan 1, 2019
100,000
Jan 1, 2020
100,000
Jan 1, 2021
200,000

Option 2
Date
Payment
July 1, 2016
200,000
Jan 1, 2017
100,000
July 1, 2018
200,000
Dec 31, 2019
50,000
Jan 1, 2020
150,000
Apr 15, 2021
100,000

2. Assuming an annual interest rate of 3%, what is the current value of the following payment
schedule?

MBA501A Excel Spreadsheet Assignment 2

$200,000
$130,000
$400,000
$200,000

January 1, 2016
April 15, 2016
November 10, 2016
February 14, 2017

3. An insurance company would like to sell you an annuity. The salesperson would like to
set up payments from you, to them for $200 per month for 10 years. They will guarantee an
annual interest rate of 6%. To make sure the salesperson is not cheating you, you can
calculate a minimum value that the payment stream is worth at the end of all the payments.
What is that value?
4. You are buying a car for $5,000 and considering options to finance a car loan. Which
payment plan has a lower monthly payment, 36 months at 5% annual interest, or 48 months
at 4% annual interest rate?
5. You have borrowed $10,000 at an annual interest rate of 5%, over 5 years, paying back the
loan on a monthly basis. At what payment (e.g., payment 5, pymt 6, etc.) are you paying
close to $27 in interest? This requires setting up the function and doing some what if
analysis with different scenarios.
6. Assume payments on a business loan are paid every quarter. The annual interest rate is
3.5%. What is the quarterly payment on a 10 year loan of $100,000?
7. Assuming an annual interest rate of 7.5%, what is the current value of the following payment
schedule?
$450 January 1, 2016
$130 February 14, 2016
$220 March 17, 2016
$800 April 29, 2016
8. What is the interest paid on monthly payment #12 of a loan with a monthly interest rate of
0.2% for $4,000, over 4 years?
9. An insurance salesperson is attempting to sell a policy that you need to contribute on a
monthly basis, $150, for 10 years and will pay a guaranteed 5% annual interest rate (Scenario
#1). You cant afford the $150 a month, and tell the salesperson, you will pay $75 and month
and require a guaranteed annual interest rate of 8% (Scenario #2). How many monthly
payments will you need to make in Scenario #2, to approximately match +/- $50 the value,
and the end of the Scenario #1 payment stream?
10. Calculate the present value of each of the following payment streams. Assume a constant
annual interest rate of 6%.
Year

Option 1

Option2

MBA501A Excel Spreadsheet Assignment 2

1
2
3
4
5

3,000
4,500
6,000
7,500
9,000

6,000
6,000
6,000
6,000
6,000