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Calculating Return on Investment (ROI) and Residual Income using Excel's IF and Basic Math Functions Adoms Corporation evaluates divisional managers based on Return on Investment (ROn) and has provided the operating results of the Northern Division from last year. The Controller has asked you to compute the ROI and Residual Income based on data from last year and if the division adds a new product line Use the intormation included in the Excel Simulation and the Excel functions described below to complete the task. - Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in o blank cell. "m5" was entered, the formula would output the result from cell 65 , or 400 in this example - Basic Math functions: Allows you to use the besic moth symbols to perform mothematicol functions. You can use the following keys: + (plus sign to add). + (minus sign to subtract). (asterisk sign to multiply), and / (forward siesh to divide) From the Excel Simulation below, if in a bionk cell "m65+G6" was entered, the formula would odd the values from those cells and output the result or to oo in this example. If using the other moth symbols the result would output an appropriate answer for its function - SUM function Allows you to refer to multiple cells ond edds all the volues You can add individual cell references or ranges to utiaze this function. From the Excel Simulation below, if in a blank cell "mSM(G5,G6,G7)" was entered, the formulo would output the result of adding those three separote cells, or 12.00 in this example. Similarly, if in o biank cell "-SUM(G5:G7* was entered, the formula would output the same result of odding those cells, except they are expressed as a range in the formula, and the result would be 12 oo in this example - If function: Allows you to test a condition and return a specific volue is the result is true and different value if the result is false. The syntax of the IF function is "wiF(test_condition,value_if_true, value_it_faise) and specific considerations need to be made when using this functon The fest_condition argument is en evaluation of the status of a cell, such as if the value of a cell is gre ater than, less than, or equal to another number or cell. The value_if_true and value_it_faise arguments will return any specific result for each option, such as another cell reference. a value, or text. Throughout the entire equation, if text is being used in the test.condition, value_it_true, or value_if faise arguments then the text itself should be entered in quotations so that Excel will recognize the text as a 'string of text' instead of another function From the Excel Simulation below, if in o blank cell "mIF(Gi0>20,"Total cost is High" "Total cost is low") was entered, the formula would output the result of the valve if true since the test_condition would be result as true, or in this case the text "Total cost is high: Excel processes the If function by separating it out into separate parts. First the test condition-Excel thinks, find cey Gio and determine if the value is greater than 20 Once Excel determines if the result of that test_condition is TRUE or FALSE, it will retum the value_it true or value. it.false. Adams Corporation evaluates divisional managers based on ROI. Operating results for the company's Northern Division for last year are given below: The Northern Division has an opportunity to add a new product line at the beginning of the year as follows: Assignment i Saved
