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Convert A Formula to Value Until A Value is Met

 
 
cardan
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      26th Jul 2010
Hello, I have somewhat of a complex problem with a circular
reference. I am in need of a macro that will convert a formula to a
value.

PROBLEM: I am working on a financial model where Interest is
calculated on Total Costs. Total Costs include Interest, and therefore
I have a circular reference. My model is fairly large (cash flows
monthly over 10 years) so this pretty much crashes my computer. These
Total Costs are paid by an "Investor" and a "Lender". This split is
decided on % of Total Costs. (ie Lender will pay 80% of the costs)

I would like to have a macro that will take the Investor and Lender
values computed within the model, convert them to Values and then I
can use those newly converted values as assumptions to start the model
to break the circular reference link.

Whenever the Total Costs change, there will be a difference between
the Total Costs used as the assumptions and what the Total Costs
calculated in the cash flow. This means I have to change the
assumptions, which means the Total Costs will change again , etc....
The good thing about this scenario is that the numbers will eventually
converge until they reach zero or something very close.

I would like to add to this macro the ability for it to keep
calculating through until the difference between assumptions used in
the model and the calculated total costs is between a range of -1 and
1.

Is this possible? Any help or feedback would be tremendously
helpful. Thank you for your time.

 
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Don Guillett Excel MVP
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      27th Jul 2010
On Jul 26, 4:27*pm, cardan <carlsondan...@gmail.com> wrote:
> Hello, I have somewhat of a complex problem with a circular
> reference. *I am in need of a macro that will convert a formula to a
> value.
>
> PROBLEM: * I am working on a financial model where Interest is
> calculated on Total Costs. Total Costs include Interest, and therefore
> I have a circular reference. My model is fairly large (cash flows
> monthly over 10 years) so this pretty much crashes my computer. These
> Total Costs are paid by an "Investor" and a "Lender". *This split is
> decided on % of Total Costs. (ie Lender will pay 80% of the costs)
>
> I would like to have a macro that will take the Investor and Lender
> values computed within the model, convert them to Values and then I
> can use those newly converted values as assumptions to start the model
> to break the circular reference link.
>
> Whenever the Total Costs change, there will be a difference between
> the Total Costs used as the assumptions and what the Total Costs
> calculated in the cash flow. *This means I have to change the
> assumptions, which means the Total Costs will change again , etc....
> The good thing about this scenario is that the numbers will eventually
> converge until they reach zero or something very close.
>
> *I would like to add to this macro the ability for it to keep
> calculating through until the difference between assumptions used in
> the model and the calculated total costs is between a range of -1 and
> 1.
>
> Is this possible? *Any help or feedback would be tremendously
> helpful. *Thank you for your time.


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