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Chapter 13. Creating a Sensitivity Analy... > Using the Goal Seek Function

Using the Goal Seek Function

When you perform a sensitivity analysis, you usually try to identify the value of an input variable that is necessary to produce a specific output. For example, it may be useful to quantify the level of incremental sales required for this project to break even, or the level that is required to produce a 15% internal rate of return. Rather than using the trial and error method of changing the sales inputs and visually inspecting the relevant outputs, you can use Excel's Goal Seek function.

Goal Seek is similar to the Solver in that it backtracks to an input value (the Changing Cell) that satisfies a result value that depends on the input value. Goal Seek is easier to use than the Solver, however, and it often finds the optimal input value faster than does the Solver. (This is because the Solver offers more options than does Goal Seek, and the Solver can modify more than one Changing Cell.)


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