Understanding the Scenario Manager feature

Scenario Manager can save you time as it eliminates the need to recreate portions of a worksheet to compare different sets of assumptions. Even better, Excel offers two reports that will compare the results of your sets of assumptions automatically.

There are a couple of constraints to keep in mind:

• Scenarios are limited to a single worksheet, meaning all inputs in the scenario must be on the same worksheet.
• Each scenario is limited to 32 inputs. However, you can apply scenarios sequentially to go beyond the 32-item input.
• There is no limit to the number of scenarios that you can store on a given worksheet.

First, let’s set up a calculation that serves as a vehicle for understanding scenarios. Following this, we’ll create multiple scenarios that we’ll swap through the calculation, and then use comparison reports to see the results of our scenarios side by side. Additionally, you’ll see...