Create Macro to remove circular reference

  • Thread starter Thread starter James Brown
  • Start date Start date
J

James Brown

Hi,

I havea financial model for a project that has a 'managment cost' that
is a 3.0% function of the total project cost, which itself is a
function if the 'management cost' - hence this creates a circular
reference.

Can anyone please explain how a can create a marco to interpolate (sp?)
to arrive at the correct 'managemnt cost' which is 3.0% of the total
cost of the project.

Hope this make sense.

Thanks,

JB
 
James,

I think there's something wrong with the logic. If the management cost
includes 3%, it should only be added in once. Otherwise, you're adding 3%
of the management cost ad nauseum, and it'll eventually add up to 87 billion
dollars.
 
James,

It occurs to me that maybe you're starting with total project cost, and want
to see what's left after the management cost is removed. That'd be:

=TotalProjectCost/1.03 or
=TotalProjectCost/(1 + ManagementCost%)

Or do I still need more coffee?

Earl Kiosterud
mvpearl omitthisword at verizon period net
 
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