Solve the attached problems using Excel, but you will also see problems that can be solved without.

1

Homework 1

1. a. Use Data Table to graph the function f(x) = 3×2 – 2x – 15,

b. Use Solver or Goal Seek to find two values of x for which f(x) = 0.

2. The Excel function PV(rate, number_periods, payment) calculates the present value of a

constant payment. For example, PV(15%,15,-1O) = 58.47. (Note that we have put the

payment as a negative number; otherwise, Excel returns a negative value!). Use Data Table

to graph the present value as a function of the discount rate. Use the rate as 15%, number of

periods as 15 and payment as 10.

3. Consider a project that costs $500 today and that has cash flows in years 1-5 of:

$100, $100 * (1 + g), $100 * (1 + g)2, $100 * (1 + g)3 and $100 * (1 + g)4. Use Data

Table to do a sensitivity analysis on the NPV of the project, varying the discount rate along

0%, 3%, 6%, 9%, … 21% and varying the growth rate along 0%, 3%, 6%, 9% and 12%.

4. Using Data Table, graph the function Sin(x *y) for x = 0, 0.2, 0.4, . . . 1.8, 2 and y = 0,

0.2, 0.4, …, 1.8, 2. Use the “Surface” graph option to make a three-dimensional graph of the

function.

5. Use Excel to perform the following matrix operations:

a.

−+

− 371

2308

211

901

784

6122

b.

−

−

2

1

3

1

2

3

6

0

9

6

5

2

c.

−

− 371

208

211

901

784

602

6. Find the inverses of the following matrices:

a.

− 6125

7244

0352

9821

2

b.

−

347

316

123

c.

−−

−

−

33923

94023

22101

33220

7. Solve the equations AX = Y, where

A =

−−

−−

−−

1113

1108

3813

, Y =

−

0

5

20

, X =

3

2

1

x

x

x