Appendix

Instructions for Using the PMF CD-ROM Software

The PMF CD-ROM contains three applications: the PMF Tutor, the PMF Problem-Solver, and the PMF Excel Spreadsheet Templates. These solutions are designed to run on any computer running Windows 98, ME, NT 4.0, 2000, or XP and Microsoft Excel version 97, 2000, or XP or higher. Be sure to visit the books Web site at http://www.aw.com/gitman to see if any updates have been made to this software since the book was published. For your convenience, chapter and section references are shown on the screen for each associated computation in the Problem-Solver and the Tutor. As noted in the text preface as well as in Chapter 1, applicability of the software throughout the text and the study guide is keyed to related text discussions, end-of-chapter problems, and end-of-chapter and end-of-part cases by icons for all of the computational routines. Thus you can integrate the procedures on the disk with the corresponding text discussions.

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What Is the PMF Tutor?

The PMF Tutor is an Excel workbook containing a collection of managerial finance problem types with the problems varied by random-number generation. Its purpose is to give you an essentially unlimited number of problems to work through so that you can practice until you are satisfied that you understand a concept. In using the Tutor, the following sequence should produce the best results: 1. Work the problem first yourself. It is tempting to save time by letting the computer solve the problem for you and then studying the computers answer. You wont learn much that way. Even if you make mistakes when you try the problem on your own, you will learn from those mistakes.

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2. Enter your answer. The computer will check your answer against the correct answer. 3. Check the solution. If you do not get the same answer as the computer, check your work step by step against the correct solution displayed on the computer screen. Doing so will help you to pinpoint your mistakes. Practice each type of problem until you have genuinely mastered it. When you take the course exams, you wont be able to fake your knowledge level. So dont stop until youre sure that you have mastered the concepts. The Tutor uses random-number generation to choose the specific numbers, so it is unlikely that you will ever see a combination of numbers twice. This gives you an effectively unlimited number of practice problems. The only limit is your willingness to practice.

What Is the PMF Problem-Solver?

The PMF Problem-Solver is an Excel workbook containing a collection of financial computation worksheets. The purpose of the PMF Problem-Solver is to aid the students learning and understanding of managerial finance by providing a fast and easy method for performing the often time-consuming mathematical computations required. It is not the intent of the PMF Problem-Solver to eliminate the need for learning the various concepts but, rather, to assist in solving the problems once the appropriate formulas have been studied. The PMF ProblemSolver differs from the Tutor in that it solves for the answer, given the input data supplied by the user, whereas the Tutor supplies the input data and looks to the student to perform the calculations. Use the Tutor to practice application of basic concepts. Then use the PMF Problem-Solver to save computational time once you understand the concepts.

What Are the PMF Excel Spreadsheet Templates?

The PMF Excel Spreadsheet Templates are preprogrammed Excel worksheets, with one file for each problem. The worksheets enable students to enter data and solve problems using Microsoft Excelthe most commonly used spreadsheet software. The worksheet files correspond to selected end-of-chapter problems, and the worksheet file names are based on the chapter number and the problem number.

Hardware and Software Requirements

To use the PMF CD-ROM, you must have the following: an IBM-compatible PC Microsoft Windows 98, ME, NT 4.0, 2000, or XP Microsoft Excel Version 97, 2000, or XP

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Installing the Software

1. Insert the PMF CD-ROM into your CD-ROM drive. 2. An autorun will automatically lead you through the installation process. If your CD is configured to bypass this autorun, select Start | Run | D:setup.exe, where D:\ is the drive letter of your CD-ROM. 3. Follow the instructions on the screen to install the files to your hard drive. You can also access the spreadsheets directly on the CD-ROM. All of the individual files are available in the PMF folder. Be sure to store the CD-ROM in a safe place in case you need to install the software again at a later time. Or you can download a fresh copy from the books Web site.

The PMF Tutor

Running the PMF Tutor
To run the PMF Tutor, either double-click on its desktop shortcut or select Start | Programs | PMF CD-ROM Software | Start PMF Tutor. When the PMF Tutor is loaded, you will see the following introductory screen:

FIGURE D1 Excel PMF Tutor Startup Screen Showing the Main Menu

Using the PMF Tutor

From the PMF Tutor main menu, click on the name of a specific problem type. Each tutorial will open with a new problem ready for you to solve. The following is an example Tutor problem:

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FIGURE D2 Excel PMF Tutor Sample Problem

There are five buttons at the top of the window for each tutorial: SolutionClick this to see the problem solution. New ProblemClick this to see new problem data. PrevClick this to move to the previous tutorial problem. MainClick this to return to the PMF Tutor main menu. NextClick this to move to the next tutorial problem.

Using the PMF Tutor Toolbar

The PMF Tutor has a toolbar that also facilitates navigation and tasks. The 14 buttons of the toolbar are explained in the following list. Click this button to open the PMF Templates. Click this button to open the Problem-Solver. Click this button to go to the main menu. Click this button to go to the previous tutorial. Click this button to go to the next tutorial. Click this button to go to the last sheet. Click this button to set the zoom factor for the tutorial. Click this button to make a new problem in the current tutorial. Click this button to check the solution to the current problem. Click this button to open the Windows calculator to facilitate your solution. Click this button to print the current tutorial sheets. Click this button to preview the printing of the current tutorial sheets. Click this button to learn more about the developer, KMT Software. Click this button to view Help for PMF Tutor. When you are ready to solve a particular tutorial problem, you may want to follow these steps:

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1. Review the learning objective. Each tutorial has a learning objective situated just below the problem. Learning objectives provide a brief description of what each problem is testing you on and note the associated section in the textbook where the material is covered. 2. Review the problem data and calculate your answer. 3. Enter your answer in the yellow cell. Note: If the problem calls for a percentage, be sure to enter the percentage in decimal form (for example, 20% as .2) or to enter the number followed by the percent sign (that is, type 20% and then press Enter). 4. Check your solution. 5. If you need more practice, click the New Problem button and begin with Step 1.

The PMF Problem-Solver

Running the PMF Problem-Solver
To run the PMF Problem-Solver, either double-click on its desktop shortcut or select Start | Programs | PMF CD-ROM Software | Start PMF Problem-Solver.

Using the PMF Problem-Solver

From the PMF Problem-Solver main menu, click on the name of a specific calculation. Here is the PMF Problem-Solver main menu:

FIGURE D3 Excel PMF ProblemSolver Start-up Screen Showing the Main Menu

Using a PMF Problem-Solver worksheet is simple. You enter your inputs in the yellow cells. You can move between these cells by using your mouse or by

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FIGURE D4 Excel PMF ProblemSolver Sample Problem

pressing the Tab on your keyboard. If any of your inputs involve percentages (such as an interest rate of 10.5%), either enter the percentage in decimal form (that is, enter .105 for 10.5%) or enter the percentage following the format number followed by the percent sign (that is, type 10.5% and then press Enter). Figure D4 shows a sample Problem-Solver problem. The PMF Problem-Solver has a toolbar that also facilitates navigation and tasks. The 12 buttons of the toolbar are explained below.

Using the Problem-Solver Toolbar

The Problem-Solver has a toolbar that performs a variety of functions depending on which button you select. The toolbar includes the following buttons and functions: Click this button to open the PMF Templates. Click this button to open the Tutor. Click this button to go to the main menu. Click this button to go to the previous sheet. Click this button to go to the next sheet. Click this button to go to the last sheet. Click this button to set the zoom factor for the Solver. Click this button to open the Windows calculator to facilitate your solution. Click this button to print the Solver sheets. Click this button to preview the printing of the current Solver sheets. Click this button to learn more about the developer, KMT Software. Click this button to view Help for PMF Problem-Solver.

The PMF Excel Spreadsheet Templates

Running the PMF Excel Spreadsheet Templates
To run one of the PMF Excel Spreadsheet Templates, either double-click on its desktop shortcut or select Start | Programs | PMF CD-ROM Software | Start PMF Templates.

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Using the PMF Excel Spreadsheet Templates

The PMF Excel Spreadsheet Templates describe the problem from the chapter material. You then enter the inputs in the yellow highlighted cells. If any of your inputs involve percentages (such as an interest rate of 10.5%), either enter the percentage in decimal form (that is, enter .105 for 10.5%) or enter the percentage following the format number followed by the percent sign (that is, type 10.5% and then press Enter). Each of the PMF Excel Spreadsheet Templates has a description of the problem at the top of the worksheet, and the answer is listed below. The screen shot in Figure D5 shows a typical problem description. The answer is made available as shown in Figure D6 below the problem description.

FIGURE D5 Example PMF Excel Spreadsheet Templates Sample Problem Description

FIGURE D6 Example PMF Excel Spreadsheet Templates Sample Answer

The data entry cells are clearly highlighted in yellow. When you enter your data, the worksheet automatically calculates the new answer.

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Using the PMF Spreadsheet Toolbar

Each PMF Spreadsheet has a toolbar that performs a variety of functions depending on which button you select. The toolbar includes the following buttons and functions: Click this button to open the PMF Templates. Click this button to open the Tutor. Click this button to go to the main menu. Click this button to go to the previous sheet. Click this button to go to the next sheet. Click this button to go to the last sheet. Click this button to set the zoom factor for the Solver. Click this button to open the Windows calculator to facilitate your solution. Click this button to print the Solver sheets. Click this button to preview the printing of the current Solver sheets. Click this button to learn more about the developer, KMT Software. Click this button to view Help for PMF Problem-Solver.