Budgeting spreadsheets: Developing Spreadsheets for the Future Worth Value Calculation
Saturday, December 18, 2010
Today, one of my friends asked me whether I can develop automated budgeting spreadsheets in Excel to estimate what is the Future Worth Value of one machine. Actually his company would like to make a decision to purchase the lease cost of several machines the vendor offered to them. They would like to make a comparison between those machines and he asked me to include only 5 variables in determining the future worth value of one machine which is the initial investment, interest rate, annual operating cost and also the number of year before the machine down.
Initially, I rejected his request as this problem is quite unrelated to my field but after doing some research on the future worth calculation I’ve found out that it is actually quite easy to digest. Moreover all of the variables that my friend asked me to include are actually the basic fundamental variables in calculating one future worth. Back in the date, I remember I used to learn about the Engineering Economic courses in my school and one of the syllabuses did teach us about the uses of Engineering Economic Factor. You may refer here for the VBA program for Engineering Economic Table that I’ve developed before.
But today I would not like to share with you on the Engineering Economic table rather on how you can easily developed your own budgeting spreadsheets for future worth value. After doing some research on the future worth calculation then it only takes me about an hour to complete my budgeting spreadsheets. I’ve inserted the values for the required variables and generating 3 different results for 3 different machines as shown below:
It’s actually quite easy to setup and use. All you have to do is to fill in the * column in order to automate calculating the future worth value donated in the blue column as shown in the figure above. This budgeting spreadsheets can be customized according to what worth value do you want to find. If you want to get one or to modify it according to your need you can asked for it here all right. Till then~
Posted byMatt at 2:38 AM
Labels: Budgeting Spreadsheets, CFD, Excel, Future Worth, Spreadsheets