Academic paper
A PROCESS FOR ASSESSING EXCEL SKILLS USING A CAPITAL BUDGETING
ANALYSIS
ABSTRACT
At present, a number of institutions have seen to use technology as one of their stated learning form. Authorization frequently needs more robust evaluation of stated goals. Therefore, using Excel skills detached from understanding to solve new concepts or problem can be difficult. This essay presents one way for assessing Excel skills through spreadsheet within a simple capital budgeting analysis. The paper also includes a timed exercise and a practice problem utilized in this method. The practice problem has been done in class or through video capture to aid students understanding the capital budgeting ideas. After that the students can have focus on utilizing Excel to assess considerably similar problems during a timed exercise. The paper also shows few recommendations using quantitative and qualitative issues and your analysis of probable risks and benefits relating to the project.
Keywords: business education, Excel, assessment, information technology, finance
INTRODUCTION
The use of technology skills through a capital budgeting analysis can be confused with assessing problem solving or gathering topic knowledge or idea. While these confusing issues cannot be removed from a technology skills assessment in terms of a business context, their manipulation can be abridged through a carefully designed assessment program.
This paper illustrates a procedure for evaluating student efficiency with technology in a capital budget management context that may be integrated into an introductory finance or accounting course. The process highlights technology skill assessment while plummeting the focal point on problem solving aptitude in relation with capital budgeting and allows consistent student preparation. Also, it will be helpful for the measurement of learning outcomes across several sections of a course. The process starts with a practice problem where the students can learn Excel skills together with organization and presentation of information, construction and use of formulas, cell referencing, and the appliance of Excel functions. The practice problem might be done in class with the help of the instructor- led exercise and in the outside of class with the aid of demonstration video using video capture software.
The structure of the paper is as follows: the assessment project is mentioned along with simple ways to differ the project to decrease prevalence of academic dishonesty as well as to include difficulty, if preferred. The skills being evaluated are illustrated and an assessment rubric is provided that can be used for an assurance of learning report and for grading. One practice problem is discussed, including guidelines for using video capture software to create a demonstration video. Solutions are delivered for the assessment instrument and the practice problem.
ASSESSMENT INSTRUMENT DESCRIPTION
The assessment instrument is a simple capital budgeting project entitled, “3D-Illusion packaging” for NEWLOOK Packaging Inc. that is completed in Excel. The assessment instrument and its solution (containing numerical values, formulas, and functions) are provided in Appendix A. The primary assignment objectives are for students to demonstrate the skills of professional organization of information and the efficient use of Excel formulas, functions, and cell referencing.
Students are provided a written set of instructions that include the project description and assigned tasks. Students must complete the assignment using a blank Excel workbook. Students must type in all inputs to the problem, create pro forma income statements for three years, calculate each year’s pro forma free cash flow, NPV, IRR, and apply a decision rule to accept or reject the project. Pro forma statements require the application of formulas, the sum function, and cell references for efficient copying to complete the problem. NPV and IRR are calculated using Excel functions with cell referencing. The decision to accept or reject the project is stated in a text box.
The task presumes that students are familiar with capital budgeting concepts, creating pro forma statements, and using the required Excel formulas, functions, and cell referencing. To transform or add the emphasis of the assessment away using Excel skills, students may complete a similar or finds challenges to learn how to construct a capital budgeting analysis in Excel. Students are capable of completing the evaluation project in one hour or less after they have worked the practice problem. Therefore, the evaluation project is rightly administered as a timed assignment, either in class or through the learning management system.
PRACTICE PROBLEM
The practice problem may be accomplished in class, preferably with students following along in Excel on lab computers or laptops. An in-class demonstration permits students to ask over the instructor questions when they do not understand a thought or miss a step in Excel. On the other hand, some students have complexity keeping up in class. They may learn better by listening first and then finishing the practice problem on their own.
Video screen capture software can be utilized to record a demonstration of the practice problem in Excel. A video demonstration supplies an out-of-class resource to aid students preparing for the assessment problem. Also, there may be an alternative delivery method for an online or hybrid course. A video demonstration permits students to outlook the practice problem a number of times and evaluates any missed steps or techniques. However, instructors do not always learn about what students do not know. One of the best processes is to make and post a video demonstration following an in-class demonstration. If this cannot be done, then student questions might also be discussed through the learning management system discussion forum or chat.
CREATING A VIDEO DEMONSTRATION
At present, a good number of software products are using to capture what is being done on the screen along with audio input. Jing is a product used in Windows operating systems that is available for free download. Quicktime is another one which is standard, preloaded software on Mac computers. Other video capture software products with more editing features are available for both Macs and PCs in the market but need license purchases (e.g., Snagit, Camtasia). The campus educational technology department can assist instructors to discover currently purchased video capture software licenses or the software may be purchased at an educational discount if it is preferred.
While Jing is available for free, it is limited to five-minute videos that may need you to create multiple “episodes” of the demonstration problem. Separating the demonstration into sections could be strategically important to individually present the basic problem set-up, calculation of cash flows/NPV/IRR, pro forma income statements, and recommendations. Short length videos also increase upload and download speeds. However, recording the exercise in multiple sections develops the instructor’s time to make sure that the exercise is fully captured and may need students to toggle between multiple videos. Online tutorials are available in the youtube to assist instructors use Jing. Guidance for using Quicktime is reachable through its help menu.
CONCLUSION
This paper illustrates a method for assessing technology in the circumstances of a capital budget management system that is completed in Excel. The process lessens the manipulation of knowledge of business ideas or problem solving skills to have focus on the assessment mostly on Excel skills. The process consists of working through a practice problem which is identical to the assessment instrument, conveying the assessment instrument in a timed platform, and using a detailed rubric to assess learning outcomes. Superlatively, the instructor will work on the practice problem in the class. Then, deliver a video demonstration online of either the same problem or another one that is fundamentally the same in format. The assessment rubric encourages its’ focus on Excel skills and assists to ensure consistent assessment of learning outcomes on various sections of a course. Although a capital budget analysis is demonstrated in this paper, the Excel skills and assessment procedure are good enough to apply to other topics in an introductory business course, such as time value of money or basic statistical analysis.
REFERENCES
Bianco, C. A., & Bosco, S. M. (2011). Financial literacy: What are business schools teaching? Journal of Global Business Management, 7(1).
Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2011). Essentials of corporate finance (7th ed.). New York, NY: McGraw-Hill.