Project Submission
Course Title: Advanced Computer Skills
Course Code: MIS 102
Section: 1
Assignment Title: Advanced Computer Skills
Company Name: Gigabite Limited
Submitted By: Md Ibrahim Khan
Sl. No Student ID
Student Name
Position
1
2330982
Md Ibrahim Khan
Group
Leader
2
2211462
Jannatul Ferdous Jannat
Member
3
2131179
Anirodho Roy Arka
Member
4
2330500
Zawad Abdullah
Member
Submitted To:
Md. Aminul Islam, MBA, CSCA
Lecturer A [Senior Lecturer]
Department of Management Information Systems (MIS)
School of Business and Entrepreneurship (SBE)
Independent University, Bangladesh
Marks
Summary
What is Forecasting?
Forecasting Is the process of making predictions about future events or trends based on
historical information, data, statistical models, and analysis. It used in the place like
finance, business and economics and predict future outcomes and make a decision.
Now the question is what kind of Functions and tools are used for Forecasting?
The answer is:
● Solver / Profit maximization
● NPV
● IRR
● Payback
● Loan Iotation
● What-If Analysis
1. Solver / Profit Maximization:
Excel Solver is an add-in tool used to find the optimal solution (like maximum
profit or minimum cost) by changing variables within constraints.
2. NPV (Net Present Value):
The =NPV() function calculates the present value of a series of future cash flows
based on a discount rate.
3. IRR (Internal Rate of Return):
The =IRR() function finds the interest rate at which the net present value (NPV) of
cash flows becomes zero.
4. Payback:
Excel doesn’t have a direct function, but Payback Period can be calculated by
analyzing when cumulative cash flows turn positive.
5. Loan Amortization:
You can use functions like =PMT(), =IPMT(), and =PPMT() to calculate monthly
loan payments, interest, and principal over time.
6. What-If Analysis:
A feature that helps you see how changing input values (like cost or sales) affects
your results; includes tools like Scenario Manager, Goal Seek, and Data Table.
How Microsoft Excel functions helps to do Forecasting in Financial analysis?
Profit Maximization Analysis Using Excel Solver
This analysis assesses Microsoft Excel Solver's optimization results for maximizing
profit while considering labor, production, and demand constraints.
Key Findings
●
●
●
●
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Profit increased from 363,500 to 364,500 after optimization.
Production adjustments:
Mouse production decreased to 10,000 units.
Keyboard production increased to 18,000 units.
USB HUB production increased to 8,500 units.
Report Analysis
1. Answer Report: Confirms optimization success with all constraints met.
2. Sensitivity Report:
a) Shadow prices for labor & production hours are 0, meaning extra resources
won’t affect profit.
b) Reduced costs indicate potential profit impact if production changes.
3. Limits Report:
a) Current production levels are optimal.
b) Increasing units beyond demand constraints won’t improve profits.
Production Constraints & Insights
● Labor & production constraints are not binding, meaning excess capacity exists.
● Demand constraints are binding, ensuring production meets exact needs.
● Expansion may be possible if demand increases.
Excel File : Profit Maximization
NPV, IRR, PI, PB
A manager at Gigabite Limited has to decide whether a project is feasible. The initial outlay of
the project is $90,000. The cash flows (inflow) in the next 4 years will be $20,000, $30,000,
$35,000, and $40,000. Find the NPV, IRR, PI, and PB. The interest rate is 10%.
Final Decision:
Although the project has a positive NPV and IRR, which are strong indicators of profitability, the
long Payback Period raise concerns about the project's speed of return.
Therefore, Gigabite should only consider approving this project if it is focused on short-term
returns.
As the company’s NPV, IRR is positive and PI is more than 1 ,the company should accept this
project..
Excel File: NPV , IRR , pi ,pb
Loan Amortization Question for Gigabite Limited
Assume that your client Gigabite Ltd. has applied for a loan of $6,00,000. The company plans to
repay the loan over the next 4 years. Your bank allows monthly repayment at an annual interest
rate of 9%.
A) What will be the monthly payment amount?
Answer: BDT 14,931.03
B) What is the monthly interest rate?
Answer: 0.75%
C) How many monthly payments will be made?
Answer: 4 years×12 months/year=48 monthly payments
D) Create a Loan Amortization Table showing the breakdown of:
Excel File: https:Loan Amortization
What is Budgeting in Excel?
Budgeting in Excel means using the spreadsheet to plan, track, and manage your income and
expenses over a period (monthly, yearly, Excel allows you to organize data, use formulas for
calculations, and create charts or summaries to visualize your financial goals.
Gigabite Limited Office Complex's Budget
The Excel Analysis construction project expenses, detailing items, quantities, unit costs, and
total costs in USD. It includes 51 items, such as materials (e.g., cement bags, steel rods, sand),
equipment, labor (safety gear (, and services. Quantities range from 1 (e.g., site manager) to
20,000 (sand in tons), with unit costs varying widely. $0.8 per meter of electrical wiring to
$5,000 for professional fees. Total costs per item range from $160 (first aid kits) to $15,000
(labor). The subtotal before contingency is $159,330, with a 5% project contingency of $7,967,
bringing the total cost to $167,297.
Excel File: Complex's Budget
Conclusion
Excel is a game-changer for financial data analysis, budgeting, and forecasting. It
simplifies complex tasks like maximizing profits with Solver, calculating NPV and
IRR to evaluate investments, figuring out payback periods, and creating loan
amortization schedules. Plus, What-If Analysis lets you test different scenarios,
while basic functions like SUM and AVERAGE help you quickly crunch numbers.
Overall, Excel makes financial planning easier, more accurate, and way more
stressful.