inserting a value from a list

I have created a drop down list with upto 8 selections, how can I insert a numerical number(price) in an adjacent cell that depends on the selection in the drop down list.
ie each of the 8 selections have different rates.

Build a lookup table containing the selections and rates, then use the VLOOKUP function in a formula to refer to the table.

Thanks Cheshirecat.
I am relatively new to excel, so now I will have to learn how to build a LOOKUP table then the rest.
any additional help would be appretiated.