Excel

Tips for CBA

10/1/16

Excel Tips for CBA Fall 20161

Print View/Formatting
To increase the ease of submitting assignments, make sure to include logical pieces of your worksheet
on the same page. The easiest way to check formatting and readability is to switch from the Normal
view to the Page Layout view. To manually change where page breaks fall, use the Page Break Preview
view.

If your worksheet still isnt readable in Print Preview, you can change the zoom of your worksheet. Excel
includes some preset options under the Print Menus Scaling drop-down menu.

Scaling drop-down menu

Thanks to last year TA, Rebecca, for preparing most of this material.

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If you want to further customize your print settings, click Page Setup at the bottom of the Print Menu,
or Custom Scaling Options at the bottom of the Scaling drop-down menu. From here, you can adjust
the scale or the number of pages of your printout.

Print Selection may also be helpful if you need to show your work for a problem set. Simply highlight the
range you want to print, then go to the Print Menu and click Print Active Sheets. Click on Print
Selection.

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Generate Random Number
Operates much in the same way as Statas runiform and rnormal commands, respectively, by
pulling random values from either a uniform or normal distribution.
Formula
=RAND()
=RAND() * (ba) + a
=RANDBETWEEN(cell1,cell2)
=NORMINV(RAND(), , )

Description
Returns values in range
[0,1)
Returns values in range
[a,b)
Returns integer values in
range [cell1,cell2)
Returns random value
with normal distribution
(, )

Note: to keep your values from recalculating every time you enter a new formula, go to File >> Options
>> Formulas and change Workbook Calculation to "Manual." You can override this and force Excel to
recalculate by pressing the F9 key.

Set Absolute Cell Reference
An absolute reference is a hard (immobile) reference to the column, row, or cell of your choice.

=$ColumnRow
=Column$Row
=$Column$Row
Highlight cell and press F9 key

Maintains original column

reference
Maintains original row
reference
Maintains original cell
reference
Switches between
relative/absolute
reference

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Link Across Tabs
Links current cell to the cell value of your choice in a different tab. You can use this formula on its own
or as a reference within a formula.
=SheetName!Cell#Reference

Link Across Workbooks
Links current cell to the cell value of your choice in another workbook.
=[Filename.xlsx]SheetName!Cell#Reference

Array Formulas
As a general overview, array formulas are used for multi-cell calculations. The braces specify a range of
valuescolumn, row, or matrixto include in a formula. Depending on the command used, Excel will
place {curly braces} around cell contents denote this arrangement.

Transpose
This command changes the row(s) of selected cells to column(s) or vice versa.
=TRANSPOSE(Array)

First, highlight the necessary cells to create a row or column of cells equal in size to the original number
of cells (i.e. a 3 cell row would indicate you need to highlight a 3 cell column).
Next, keeping highlighted the cells where you want the original values transposed, input the formula
above and Press Ctrl + Shift + Enter to denote your data are in an array. All the cells in your new matrix
will populate with values. If you highlight a cell containing transposed data, you will see the formula in
the formula bar is now enclosed in curly braces, i.e. {=TRANSPOSE(Array)}.

To transpose without using the formula above, highlight the selected columns and copy them. Select a
new cell not included in the previous selection. On the Home Menu, click
and then Transpose.

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Or, select a new cell not included in the previous selection, right click and go to Paste Special >>
Transpose icon.

Invert a Matrix (A) /Find Inverse (A-1)
We will be using 2x2 matrices for Economic Impact Analysis. To determine the multiplier effect, you will
need to invert a matrix. First, highlight the necessary cells to create a matrix equal in size to the original
(i.e. a 3x3 matrix would indicate you need to highlight 3x3 cells).
Next, keeping the cells where you want the inverse matrix highlighted, input the formula below.
=MINVERSE(Array)

Press Ctrl + Shift + Enter denote your data are in an array. All the cells in your new matrix will populate
with values. If you highlight a cell in the inverse matrix, you will see the formula in the formula bar is
now enclosed in curly braces, i.e. {=MINVERSE(Array)}.

Present Value Formula
We will use this formula often in CBA. Present value determines the value today of funds utilized in the
future. Future dollars need to be discounted because a dollar today is worth more than a dollar in the
future.
Formula for Present Value, assuming finite N (number of payment periods) and no growth.
!

=
!!!

(1 + ) !

where r is the discount rate, T is the terminal period.

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We can cross-check a manual calculation in Excel:
=PV(rate, #paymentperiods, payment, [fv], whenpaymentdue)

This formula has several components:
1.
2.
3.
4.

rate interest rate per period

nper number of payment periods in the term of the annuity
pmt payment made each period (optional)
fv future value, or remaining balance, you want to obtain after the last payment (optional,
assumed = 0 if omitted)
5. type when payment is made (1 = beginning of period, 0 = end of period)
Consider the following CBA example: Suppose that Im having a considerable amount of
saving ($22000) and considering buying a car in order to rent it out to my neighbor so he
can drive Uber. He promises me to cover all insurance, gas, repair costs and paying me
$400 by the end of every month for 5 years. Assume that the annual discount rate is 8%.
There are three cars I can choose from Honda Civic $18000, Honda Accord $22000, and
Mazda 3 $19000. The respective resale values after 5 years are $1800, $3000, and
$1900. Which one should I buy?
First, the PV of each car is PV(8%/12, 5*12, $400, resale_value, 0). Then using the net PV
benefit I then can figure out which car should I buy!
Display Trendline Equation

1. On an unstacked, 2-D, area, bar, column, line, stock, xy (scatter), or bubble

chart, click the trendline that you want to change, or do the following to select it
from a list of chart elements.

a. Click anywhere in the chart.

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b. This displays the Chart Tools, adding the Design, Layout, and Format tabs.

2. On the Format tab, in the Current Selection group, click the arrow next to
the Chart Elements box, and then click the chart element that you want.
a. On the Layout tab, in the Analysis group, click Trendline, and then
click More Trendline Options.

b. To display the trendline equation on the chart, select the Display Equation on
chart check box.
Note that trendline equation is very useful to estimate the demand or supply functions, which
in turn help to calculate the surplus! You can follow this link to learn more about trendline:
https://support.office.com/en-us/article/Add-a-trend-or-moving-average-line-to-a-chart3c4323b1-e377-43b9-b54b-fae160d97965