Unformatted text preview: vide in the text a number of spreadsheet
solutions that identify the cell entries for calculating time values. The value for
each variable is entered in a cell in the spreadsheet, and the calculation is programmed using an equation that links the individual cells. If values of the variables are changed, the solution automatically changes as a result of the equation
linking the cells. In the spreadsheet solutions in this book, the equation that
determines the calculation is shown at the bottom of the spreadsheet.
The ability to use spreadsheets has become a prime skill for today’s managers.
As the saying goes, “Get aboard the bandwagon, or get run over.” The spreadsheet
solutions we present in this book will help you climb up onto that bandwagon! Basic Patterns of Cash Flow
The cash flow—both inflows and outflows—of a firm can be described by its general pattern. It can be defined as a single amount, an annuity, or a mixed stream.
Single amount: A lump-sum amount either currently held or expected at
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