Choose a transparent response to circular references in a spreadsheet model.
Model risk A debt sweep and interest schedule now depend on each other, and the workbook only works with iteration turned on. A converged number is not enough if no one understands how it was produced. Design principle Resolve or govern circularity explicitly. Choose among algebraic redesign, documented iteration, or a simplifying assumption based on the decision need and review burden. Weak move Turn iteration on and hope the number settles. A circularity approach reviewers can understand and test. The problem is not circularity itself; the problem is circularity with no transparent control around it. Find the first move Step…
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