IST questions

1. What is the purpose of a spreadsheet model and how can a spreadsheet model help the owners of the Terra Cotta Brew Coffee Shop make decisions about the renovation?

2. Which variables did you indicate as your key inputs, decision variables, uncertain variables, and outputs? Why?

3. Describe how you incorporated each of the design principles into your spreadsheet model.

4. Assuming that the investment amount is $137,000, and the estimated growth rates are accurate, should the owners go with a monthly or quarterly payment plan? Why?

5. What kinds of what-if analysis should  be conducted to ensure a good decision is made?


6. Explain a scenario where you would not recommend the owners invest in the renovations,


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