Special Edition Using Microsoft® Office XP

Storing Multiple Scenarios in a Single Workbook

One of Excel's most valuable hidden features is its capability to store multiple scenarios within a single workbook. Creating scenarios helps you plan for a future in which you can't be certain that your worksheet model is accurate, especially when a change in one assumption will have a ripple effect on other values that affect the bottom line. Scenarios are useful in these two circumstances:

• When the underlying assumptions depend on external factors out of your control, such as the weather or the economy. For example, if you sell heating oil or umbrellas, you might create a P&L forecast using multiple scenarios to compare the results of strong sales in cold, wet weather and weak sales if the winter ...