How financial modelling techniques can be used by CPA?

Microsoft Excel enables user to recalculate complete spreadsheet quickly to evaluate different outcomes. There are some modeling techniques that user can use as a comparison for making financial decisions from several variables (Presto, pg. 326). They are Sensitivity analysis, goal seeking and sensitivity analysis. I.<Tab/>Sensitivity Analysis Sensitivity analysis is "a process of analysis the changing of a single variable in a small increments or decrements to see how sensitive model …

…table, Excel substitutes a series of different values for two input values in a formula (Harvey, 620). These are steps that to do the sensitivity analysis by using Data Table, as shown below. 1.<Tab/>Construct the formula for the monthly payment of the loan. 2.<Tab/>Select the cells that will be used for the table which include the term range and the interest rate range in the table.