c. Vary the discount rate between 5 and 15% and the peak share for market penetration between 0 and 10%. Describe business insights about the device that you learn from the results. d. Vary all parameters in the model by +15%. List below the parameters except the dates three that have the strongest impact on the NPV. Part B: The model as currently built has a number of bugs. Your task in this part is to find these bugs. The types of bugs you are to look for include: only a numerical input does not correspond to the problem description wrong input: the numerical value of an input appears in a formula (this excludes the hard-coded input: value zero in a cell) a formula uses an incorrect cell reference (i.e., points to the wrong cell) reference: a formula is used incorrectly. logic: You should assume the of the model is correct unless it explicitly contradicts accounting logic the problem statement. Thus, for example, negative taxes are allowable in row 81. List the cell address or addresses of the bugs you find below and give a brief explanation of why it is an error and you would fix it. how Cell Address(es) Explanation and Fix Etc… _____________________________________________________________________________ 3. Finding bugs in the Material X model Open the workbook MaterialBugs.xlsx. This model was built to estimate the market potential for a consumer product that uses Raw Material X as a key ingredient. Unfortunately, this model has bugs.
c. Vary the discount rate between 5 and 15% and the peak share for market penetration between 0 and 10%. Describe business insights about the device that you learn from the results. d. Vary all parameters in the model except the dates by +15%. List below the three parameters that have the strongest impact on the NPV. Part B: The model as currently built has a number of bugs. Your task in this part is to find these bugs. The only types of bugs you are to look for include: wrong input: a numerical input does not correspond to the problem description hard-coded input: the numerical value of an input appears in a formula (this excludes the value zero in a cell) reference: a formula uses an incorrect cell reference (i.e., points to the wrong cell) logic: a formula is used incorrectly. You should assume the accounting logic of the model is correct unless it explicitly contradicts the problem statement. Thus, for example, negative taxes are allowable in row 81. List the cell address or addresses of the bugs you find below and give a brief explanation of why it is an error and how you would fix it. Cell Address(es) Explanation and Fix Etc… _____________________________________________________________________________ 3. Finding bugs in the Material X model Open the workbook MaterialBugs.xlsx. This model was built to estimate the market potential for a consumer product that uses Raw Material X as a key ingredient. Unfortunately, this model has bugs.
Testbank_Problems.docx