Requirements

Use What-if Analysis feature of Excel program to work on the following case study. You will use Scenario Manager to create three scenarios. Name your Excel workbook as P3_Scenarios

Case Information

Suppose you had a part time job that earned $18,000 in 2017. After several years of flat wage rate, you hope to see a wage increase in 2018. Table 1 below shows your estimated annual living expenses.

Table 1. Income and Expense Budget

Income(2017)	$18,000.00
Rent	$3,600.00
Tuition	$6,500.00
Insurance	$2,000.00
Meal	$4,000.00
Gas	$1,200.00
Communication	$600.00
Total expense	$17,900.00
Left over	$100.00

To plan your finances for year 2018, you will create three scenarios (worst, most likely, and best) using Scenario Manager in Excel program and generate Scenario Summary Report (make sure you rename the changing cells and result cells). The inflation rates and wage increase under three scenarios are given in the Table 2 below. Assume the inflation rate applies to all the expenses in the table.

Rate estimates	Scenarios for Year 2018
	Worst Case	Likely	Best Case
Inflation rate	8.00%	4.50%	1.00%
Wage increase	0%	4.00%	6.00%

Table 2. Estimated Rates for Three Scenarios

You must use Scenario Manager to do this project. The output should look like the following Scenario Summary table (Table 3). When I evaluate your project, I will examine your formula in the spreadsheet as well as the Summary Report generated by Excel in your spreadsheet workbook.

Table 3 Scenario Summary

		Scenario Summary
				Current Values:	best	likely	worst
		Changing Cells:
			infrate	0.00%	1.00%	4.50%	8.00%
			wageraise	0.00%	6.00%	4.00%	0.00%
		Result Cells:
			Total_Income	18000	19080	18720	18000
			Total_Expenses	17900	18079	18705.5	19332
			NetSaving	$100.00	$1,001.00	$14.50	($1,332.00)
		Notes: Current Values column represents values of changing cells at times Scenario Summary Report was created. Changing cells for each scenario are highlighted in gray.