DEPARTMENT OF

MANAGEMENT
STUDIES (BBA)

Subject Name : INFORMATION TECHNOLOGY FOR

BUSINESS – I

Module No. and Name : 4 MICROSOFT EXCEL IN BUSINESS

Title of the Sub-topic : Financial Functions and Logical Functions

Class & Section (Optional) : 5th Sem BBA

Narayana B,
Asst. Professor
 DEPARTMENT OF
MANAGEMENT
STUDIES (BBA)

Syllabus

• Introduction to MS Excel, features of MS Excel, Cell reference, Format

cells, Data Validation, Protecting Sheets,
• Data Analysis in Excel: Sort, Filter, Conditional Formatting, Preparing
Charts, Pivot Table, What if Analysis(Goal Seek, Scenario manager),
• Financial Functions: NPV, PMT, PV,FV, Rate, IRR, DB,SLN,SYD.
• Logical Functions: IF, AND, OR,
• Lookup Functions: V Lookup, H Lookup,
• Mathematical Functions, Text Functions.

Narayana B,
Asst. Professor
 DEPARTMENT OF
MANAGEMENT

Introduction STUDIES (BBA)

Spreadsheet: Features:
an electronic document in which data is arranged in 1. Conditional Formatting
the rows and columns of a grid and can be 2. Cell Styles
manipulated and used in calculations. A spreadsheet 3. Formatting and Editing from the Home Tab
is a computer application for organization, analysis, 4. Charts from the Insert Tab
and storage of data in tabular form. 5. Format as Table
6. Page Layout View
Microsoft Excel: Microsoft Excel is a software program 7. Style Galleries
produced by Microsoft that allows users to organize, 8. Document information and Printing in backstage view
format and calculate data with formulas using a 9. The Ribbon
spreadsheet system. 10. Live Preview

Application of spreadsheet: Advantages:

1. Budgets 1. Easy data entry and operations
2. Inventory Management 2. Accurate comparisons and analysis options
3. Portfolio Management 3. Allows graphical representation of data
4. Costing 4. Compatible with other business applications
5. Management decision support. 5. Ready to use formulas

Narayana B,
Asst. Professor
 DEPARTMENT OF
MANAGEMENT
STUDIES (BBA)

Cell: Formatting:
A cell is the intersection between a row and a column in a Formatting in Excel means to modify the
worksheet. A cell’s location is given by the letter of the data's appearance in a worksheet.
column followed by the number of the intersecting row. Formatting the data can be in various
ways, like formatting the font of the cells
Cell Reference: or the table with the help of the styles and
A cell reference refers to a cell or a range of cells on a worksheet format tab present in the Home tab.
and can be used in a formula so that Microsoft Office Excel can find
the values or data that you want that formula to calculate. • Alignment
• Orientation
In one or several formulas, you can use a cell reference to refer to: • Word Wrap
• Data from one or more contiguous cells on the worksheet. • Shrink to Fit
• Data contained in different areas of a worksheet. • Merge Cells
• Data on other worksheets in the same workbook. • Font Management
• Border and Frames
Notation: • Patterns
The “$” symbol is used to denote an absolute or mixed reference. • Formatting Row and Columns
• $B$2
• Formatting Sheet
• $B2
• Data Sorting
• B$2
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Asst. Professor
 DEPARTMENT OF

Data Validation: MANAGEMENT

STUDIES (BBA)

1. Select the cell(s) you want to create a rule for.

2. Select Data >Data Validation.
3. On the Settings tab, under Allow, select an option:
• Whole Number - to restrict the cell to accept only whole numbers.
• Decimal - to restrict the cell to accept only decimal numbers.
• List - to pick data from the drop-down list.
• Date - to restrict the cell to accept only date.
• Time - to restrict the cell to accept only time.
• Text Length - to restrict the length of the text.
• Custom – for custom formula.
4. Under Data, select a condition.
5. Set the other required values based on what you chose
for Allow and Data.
6. Select the Input Message tab and customize a message users will see
when entering data.
7. Select the Show input message when cell is selected checkbox to display
the message when the user selects or hovers over the selected cell(s).
8. Select the Error Alert tab to customize the error message and to choose a
Style.
9. Select OK.
Now, if the user tries to enter a value that is not valid, an Error Alert appears
with your customized message.

Narayana B,
Asst. Professor
 DEPARTMENT OF

Worksheet Protection MANAGEMENT

STUDIES (BBA)

To prevent other users from accidentally or deliberately changing, moving, or deleting data in a
worksheet, you can lock the cells on your Excel worksheet and then protect the sheet with a password.

1. On the Review tab, click Protect Sheet.

2. In the Allow all users of this worksheet to list, select the

elements you want people to be able to change.

3. Optionally, enter a password in the Password to

unprotect sheet box and click OK. Re-enter the password
in the Confirm Password dialog box and click OK.

Narayana B,
Asst. Professor
 Data Analysis - Sort
DEPARTMENT OF
MANAGEMENT
STUDIES (BBA)

1. Select a cell in the column you want to sort.

2. On the Data tab, in the Sort & Filter group, do one of the
following:
• To quick sort in ascending order, click
• To quick sort in descending order, click

Narayana B,
Asst. Professor
 Data Analysis - Filter
DEPARTMENT OF
MANAGEMENT
STUDIES (BBA)

1. Select any cell within the range

2. Select Data > Filter.
3. Select the column header arrow
4. Select Text Filters or Number Filters, and then select a
comparison, like Between.
5. Enter the filter criteria and select OK.

Narayana B,
Asst. Professor
 Data Analysis - Conditional DEPARTMENT OF
MANAGEMENT

Formatting STUDIES (BBA)

1. Select the range of Data

2. Select Home > Conditional Formatting
3. Select Highlight cell rules or any other option from the drop down, and then provide the
required condition to be performed and click ok.

Narayana B,
Asst. Professor
 Data Analysis - Preparing DEPARTMENT OF
MANAGEMENT

Charts
STUDIES (BBA)

Create a chart

1. Select data for the chart.

2. Select Insert > Recommended
Charts
3. Select a chart on
the Recommended Charts tab, to
preview the chart.
4. Select a chart.
5. Select OK.

Add a trendline

6. Select a chart
7. Select Design > Add Chart
Element.
8. Select Trendline and then select
the type of trendline you want,
such as Linear, Exponential, Linear
Forecast, or Moving Average.
Narayana B,
Asst. Professor
 Data Analysis - Preparing DEPARTMENT OF
MANAGEMENT

Charts
STUDIES (BBA)

Create a chart

1. Select data for the chart.

2. Select Insert > Recommended Charts
3. Select a chart on the Recommended
Charts tab, to preview the chart.
4. Select a chart.
5. Select OK.

Add a trendline

6. Select a chart
7. Select Design > Add Chart Element.
8. Select Trendline and then select the type
of trendline you want, such
as Linear, Exponential, Linear Forecast,
or Moving Average.

Narayana B,
Asst. Professor
 DEPARTMENT OF

Data Analysis – Pivot Table MANAGEMENT

STUDIES (BBA)

Create a PivotTable in Excel for Windows

1. Select the cells you want to create a PivotTable from.

2. Select Insert > PivotTable
3. Under Choose the data that you want to analyze,
select Select a table or range. 
4. In Table/Range, verify the cell range.
5. Under Choose where you want the PivotTable report to be
placed, select New worksheet to place the PivotTable in a
new worksheet or Existing worksheet and then select the
location you want the PivotTable to appear.
6. Select OK.

Narayana B,
Asst. Professor
 DEPARTMENT OF

Data Analysis – Pivot Table MANAGEMENT

STUDIES (BBA)

Building out your PivotTable

1. To add a field to your PivotTable, select the field name

checkbox in the PivotTables Fields pane.
2. To move a field from one area to another, drag the field to
the target area.

Narayana B,
Asst. Professor
 Data Analysis – What if DEPARTMENT OF
MANAGEMENT

Analysis
STUDIES (BBA)

Meaning:

By using What-If Analysis tools in Excel, you can use several different sets of values in one or more formulas to explore all the various
results. What-If Analysis is the process of changing the values in cells to see how those changes will affect the outcome of formulas on
the worksheet.

Types of What if Analysis in Excel:

1. Scenarios - A Scenario is a set of values that Excel saves and can substitute automatically on your worksheet. You can create and save
different groups of values as scenarios and then switch between these scenarios to view the different results.

2. Data Tables- A data table is a range of cells in which you can change values in some of the cells and come up with different answers
to a problem.

3. Goal Seek - If you know the result that you want from a formula, but are not sure what input value the formula needs to get that
result, use the Goal Seek feature.

Narayana B,
Asst. Professor
 DEPARTMENT OF

Data Analysis – What if Analysis MANAGEMENT

STUDIES (BBA)

Step 1: Create a table as shown Scenarios Manager

Step 3: Enter the changing
values; values that you
would like to substitute
automatically and Click Ok

Step 2: Click on Data from Menu Bar > What if Analysis >
Scenario Manager > ok

Step 4: Now change the

values in the table (step 1)
as per the desired
scenario to be checked.
To get back to the initial
scenario as per table in
Step 1 click on Data >
What if Analysis > select
Simple Interest > Show.
Original Scenario will
reflect again.

Narayana B,
Asst. Professor
 DEPARTMENT OF

Data Analysis – What if Analysis MANAGEMENT

STUDIES (BBA)

Step 1: Create a table as shown Goal Seek

Step 4: after clicking ok in step 3, value would

automatically get calculated as shown below in
Goal Seek status and in Excel worksheet.

Step 2: Click on Data from Menu Bar > What if Analysis > Goal
Seek > ok

Step 3: Enter the values as below assuming that you would want to
pay only 30000 (Value) as interest (value to be calculated in cell B5
(Set Cell) and want to know how many years to be considered
instead of value in Cell B3 (By changing cell) and Click Ok.

This calculation shows that, if the desired Simple

Interest is 30000, then the number of years has
to be 3 years.

Narayana B,
Asst. Professor
 DEPARTMENT OF

Financial Functions
MANAGEMENT
STUDIES (BBA)

Description:
NPV Description: PMT
Calculates the net present value of an PMT, one of the financial functions, calculates the payment for a
investment by using a discount rate and a series loan based on constant payments and a constant interest rate.
of future payments (negative values) and
Syntax
income (positive values).
Syntax =PMT(rate, nper, pv, [fv], [type])

=NPV(rate,value1,[value2],...) The PMT function syntax has the following arguments:

The NPV function syntax has the following
• Rate    Required. The interest rate for the loan.
arguments:
• Nper    Required. The total number of payments for the loan.
• Pv    Required. The present value, or the total amount that a
• Rate    Required. The rate of discount over
series of future payments is worth now; also known as the
the length of one period.
principal.
• Value1, value2, ...    Value1 is required,
• Fv    Optional. The future value, or a cash balance you want to
subsequent values are optional. 1 to 254
attain after the last payment is made. If fv is omitted, it is
arguments representing the payments and
assumed to be 0 (zero), that is, the future value of a loan is 0.
income.
• Type    Optional. The number 0 (zero) or 1 and indicates when
Narayana B, payments are due.
Asst. Professor
 DEPARTMENT OF

Financial Functions - PV
MANAGEMENT
STUDIES (BBA)

The PV function syntax has the following

Description:
arguments:
PV, one of the financial functions, calculates the
present value of a loan or an investment, based • Rate Required. The interest rate per period.
on a constant interest rate. You can use PV with • Nper Required. The total number of payment periods
either periodic, constant payments (such as a in an annuity.
mortgage or other loan), or a future value that's • Pmt Required. The payment made each period and
your investment goal. cannot change over the life of the annuity. Typically, pmt
includes principal and interest but no other fees or
taxes.
• Fv Optional. The future value, or a cash balance you
want to attain after the last payment is made. If fv is
Syntax omitted, it is assumed to be 0 (the future value of a
loan, for example, is 0).
=PV(rate, nper, pmt, [fv], [type]) • Type Optional. The number 0 or 1 and indicates when
payments are due.

Narayana B,
Asst. Professor
 DEPARTMENT OF

Financial Functions - FV
MANAGEMENT
STUDIES (BBA)

The FV function syntax has the following arguments:

Description:
• Rate Required. The interest rate per period.
FV, one of the financial functions, calculates the
future value of an investment based on a constant • Nper Required. The total number of payment periods in
interest rate. You can use FV with either periodic, an annuity.
constant payments, or a single lump sum payment.
• Pmt Required. The payment made each period; it
cannot change over the life of the annuity. Typically, pmt
contains principal and interest but no other fees or taxes.
Syntax If pmt is omitted, you must include the pv argument.

=FV(rate,nper,pmt,[pv],[type]) • Pv Optional. The present value, or the lump-sum

amount that a series of future payments is worth right
now. If pv is omitted, it is assumed to be 0 (zero), and you
must include the pmt argument.

• Type Optional. The number 0 or 1 and indicates when

payments are due. If type is omitted, it is assumed to be
Narayana B, 0.
Asst. Professor
 DEPARTMENT OF

Financial Functions - Rate

MANAGEMENT
STUDIES (BBA)

The Rate function syntax has the following arguments:

Description: • Nper Required. The total number of payment periods in

an annuity.
Returns the interest rate per period of an annuity.
RATE is calculated by iteration and can have zero or • Pmt Required. The payment made each period and
more solutions. If the successive results of RATE do cannot change over the life of the annuity. Typically, pmt
not converge to within 0.0000001 after 20 includes principal and interest but no other fees or taxes.
iterations, RATE returns the #NUM! error value.. If pmt is omitted, you must include the fv argument.

• Pv Required. The present value — the total amount that

Syntax
a series of future payments is worth now.
=RATE(nper, pmt, pv, [fv], [type], [guess])
• Fv Optional. The future value, or a cash balance you
want to attain after the last payment is made. If fv is
omitted, it is assumed to be 0 (the future value of a loan,
for example, is 0). If fv is omitted, you must include the
pmt argument.

• Type Optional. The number 0 or 1 and indicates when

Narayana B, payments are due
Asst. Professor
 DEPARTMENT OF

Financial Functions - IRR

MANAGEMENT
STUDIES (BBA)

The IRR function syntax has the following arguments

Description:

Returns the internal rate of return for a series of cash • Values Required. An array or a reference to cells
flows represented by the numbers in values. These cash that contain numbers for which you want to
flows do not have to be even, as they would be for an calculate the internal rate of return.
annuity. However, the cash flows must occur at regular • Values must contain at least one positive value
intervals, such as monthly or annually. The internal rate and one negative value to calculate the internal
of return is the interest rate received for an investment rate of return.
consisting of payments (negative values) and income
(positive values) that occur at regular periods. • IRR uses the order of values to interpret the
order of cash flows. Be sure to enter your
payment and income values in the sequence
Syntax you want.

=IRR(values, [guess]) • If an array or reference argument contains text,

logical values, or empty cells, those values are
ignored.

• Guess Optional. A number that you guess is close

Narayana B, to the result of IRR.
Asst. Professor
 DEPARTMENT OF

Financial Functions - DB
MANAGEMENT
STUDIES (BBA)

Description: The DB function syntax has the following

arguments:
Returns the depreciation of an asset for a specified
• Cost    Required. The initial cost of the
period using the fixed-declining balance method.
asset.
• Salvage    Required. The value at the end
of the depreciation (sometimes called the
salvage value of the asset).
• Life    Required. The number of periods
Syntax
over which the asset is being depreciated
(sometimes called the useful life of the
=DB(cost, salvage, life, period, [month])
asset).
• Period    Required. The period for which
you want to calculate the depreciation.
Period must use the same units as life.
• Month    Optional. The number of months
in the first year. If month is omitted, it is
assumed to be 12.
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Asst. Professor
 DEPARTMENT OF

Financial Functions
MANAGEMENT
STUDIES (BBA)

SLN SYD
Description: Description:

Returns the straight-line depreciation of an asset for Returns the sum-of-years' digits depreciation of
one period. an asset for a specified period.
Syntax Syntax

=SLN(cost, salvage, life) =SYD(cost, salvage, life, per)

The SLN function syntax has the following The SYD function syntax has the following arguments:
arguments:
• Cost    Required. The initial cost of the asset.
• Cost    Required. The initial cost of the asset. • Salvage    Required. The value at the end of the
• Salvage    Required. The value at the end of the depreciation (sometimes called the salvage value of
depreciation (sometimes called the salvage value the asset).
of the asset). • Life    Required. The number of periods over which
• Life    Required. The number of periods over which the asset is depreciated (sometimes called the useful
the asset is depreciated (sometimes called the life of the asset).
useful life of the asset). • Per    Required. The period and must use the same
Narayana B, units as life.
Asst. Professor
 DEPARTMENT OF

Logical Functions MANAGEMENT

STUDIES (BBA)

IF function: AND function:

The IF function is one of the most popular functions in Use the AND function, one of the logical functions, to
Excel, and it allows you to make logical comparisons determine if all conditions in a test are TRUE.
between a value and what you expect.
Syntax
So an IF statement can have two results. The first result is
if your comparison is True, the second if your comparison =AND(logical1, [logical2], ...)
is False.
The AND function syntax has the following
For example, =IF(C2=”Yes”,1,2) says IF(C2 = Yes, then arguments:
return a 1, otherwise return a 2).
Argument Description
Required. The first condition that you want to
Logical1 test that can evaluate to either TRUE or
FALSE.
Optional. Additional conditions that you want
Logical2, ... to test that can evaluate to either TRUE or
Narayana B, FALSE, up to a maximum of 255 conditions.
Asst. Professor
 DEPARTMENT OF

Logical Functions MANAGEMENT

STUDIES (BBA)

The OR function syntax has the following

OR function: arguments:

Use the OR function, one of the logical functions,

to determine if any conditions in a test are TRUE.

Argument Description
Syntax: Required. The first condition that you want
Logical1 to test that can evaluate to either TRUE or
=OR(logical1, [logical2], ...) FALSE.

Optional. Additional conditions that you

want to test that can evaluate to either TRUE
Logical2, ...
or FALSE, up to a maximum of 255
conditions.

Narayana B,
Asst. Professor
 DEPARTMENT OF
Lookup Functions – V LOOKUP MANAGEMENT
STUDIES (BBA)

How to get started

There are four pieces of information that you will need in order to
Use VLOOKUP when you need to find things in a
build the VLOOKUP syntax:
table or a range by row. For example, look up a price
of an automotive part by the part number, or find an 1. The value you want to look up, also called the lookup value.
employee name based on their employee ID. 2. The range where the lookup value is located. Remember that
the lookup value should always be in the first column in the
range for VLOOKUP to work correctly. For example, if your
In its simplest form, the VLOOKUP function says: lookup value is in cell C2 then your range should start with C.
3. The column number in the range that contains the return value.
=VLOOKUP(What you want to look up, where you For example, if you specify B2:D11 as the range, you should
want to look for it, the column number in the range count B as the first column, C as the second, and so on.
containing the value to return, return an Approximate 4. Optionally, you can specify TRUE if you want an approximate
or Exact match – indicated as 1/TRUE, or 0/FALSE). match or FALSE if you want an exact match of the return value. If
you don't specify anything, the default value will always be
TRUE or approximate match.

Now put all of the above together as follows:

=VLOOKUP(lookup value, range containing the lookup value, the

column number in the range containing the return value,
Approximate match (TRUE) or Exact match (FALSE)).
Narayana B,
Asst. Professor
 DEPARTMENT OF
Lookup Functions – H LOOKUP MANAGEMENT
STUDIES (BBA)

The HLOOKUP function syntax has the following arguments:

Description: • Lookup_value    Required. The value to be found in the first
row of the table. Lookup_value can be a value, a reference,
Searches for a value in the top row of a table or an or a text string.
array of values, and then returns a value in the same • Table_array    Required. A table of information in which
column from a row you specify in the table or array. data is looked up. Use a reference to a range or a range
Use HLOOKUP when your comparison values are name.
located in a row across the top of a table of data, and • Row_index_num    Required. The row number in
table_array from which the matching value will be
you want to look down a specified number of rows.
returned. A row_index_num of 1 returns the first row value
Use VLOOKUP when your comparison values are in table_array, a row_index_num of 2 returns the second
located in a column to the left of the data you want to row value in table_array, and so on. If row_index_num is
find. less than 1, HLOOKUP returns the #VALUE! error value; if
The H in HLOOKUP stands for "Horizontal." row_index_num is greater than the number of rows on
table_array, HLOOKUP returns the #REF! error value.
• Range_lookup    Optional. A logical value that specifies
Syntax: whether you want HLOOKUP to find an exact match or an
approximate match. If TRUE or omitted, an approximate
=HLOOKUP(lookup_value, table_array, match is returned. In other words, if an exact match is not
row_index_num, [range_lookup]) found, the next largest value that is less than lookup_value
is returned. If FALSE, HLOOKUP will find an exact match. If
one is not found, the error value #N/A is returned.
Narayana B,
Asst. Professor
 DEPARTMENT OF
Mathematical Functions MANAGEMENT
STUDIES (BBA)

Function Description Function Description

ABS function Returns the absolute value of a number PRODUCT function Multiplies its arguments
Returns a random number between the numbers
EVEN function Rounds a number up to the nearest even integer RANDBETWEEN function you specify

EXP function Returns e raised to the power of a given number ROUND function Rounds a number to a specified number of digits

ROUNDDOWN function Rounds a number down, toward zero

FACT function Returns the factorial of a number
ROUNDUP function Rounds a number up, away from zero
FACTDOUBLE function Returns the double factorial of a number
SIGN function Returns the sign of a number
GCD function Returns the greatest common divisor
SQRT function Returns a positive square root
INT function Rounds a number down to the nearest integer
SQRTPI function Returns the square root of (number * pi)
LCM function Returns the least common multiple
SUBTOTAL function Returns a subtotal in a list or database
MOD function Returns the remainder from division
SUM function Adds its arguments
ODD function Rounds a number up to the nearest odd integer SUMIF function Adds the cells specified by a given criteria

PI function Returns the value of pi SUMIFS function Adds the cells in a range that meet multiple criteria

POWER function Returns the result of a number raised to a power Returns the sum of the products of corresponding
SUMPRODUCT function
array components
Narayana B, . SUMSQ function Returns the sum of the squares of the arguments
Asst. Professor
 DEPARTMENT OF

Text Functions MANAGEMENT

STUDIES (BBA)

Formula Description
The TEXT function lets you change the way a Currency with a thousands separator and 2 decimals,
number appears by applying formatting to it =TEXT(1234.567,"$#,##0.0 like $1,234.57. Note that Excel rounds the value to 2
0")
with format codes. It's useful in situations where decimal places.
you want to display numbers in a more readable =TEXT(TODAY(),"MM/
Today’s date in MM/DD/YY format, like 03/14/12
format, or you want to combine numbers with DD/YY")
text or symbols. =TEXT(TODAY(),"DDDD") Today’s day of the week, like Monday

Syntax =TEXT(NOW(),"H:MM Current time, like 1:29 PM

AM/PM")

=TEXT(value, format_text) =TEXT(0.285,"0.0%") Percentage, like 28.5%

=TEXT(4.34 ,"# ?/?") Fraction, like 4 1/3
The TEXT function syntax has the following
Fraction, like 1/3. Note this uses the TRIM function to
arguments: =TRIM(TEXT(0.34,"# ?/?"))
remove the leading space with a decimal value.
Argument Description =TEXT(12200000,"0.00E+0
Name Scientific notation, like 1.22E+07
0")

value A numeric value that you want to be =TEXT(1234567898,"[<=99

converted into text. 99999]###-####;(###) ###- Special (Phone number), like (123) 456-7898
####")
A text string that defines the
format_text formatting that you want to be =TEXT(1234,"0000000") Add leading zeros (0), like 0001234
applied to the supplied value.
=TEXT(123456,"##0° 00' Custom - Latitude/Longitude
Narayana B, 00''")
Asst. Professor