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Default Linking in Excel

Can anyone explain:
1. What are the advantages to linking in Excel as compared to using linked
cells with in a work book of several sheets?

2. Is there a simple method to insert a link between workbook worksheets?
C:Data\Costs\..................................... ...................
Ordoes it have to be entered manually?

3. Faced with several large workbooks with many formulae connected by links.
What is the best method to anaylis the spreadsheets?

Thanks in advance
 
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