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To extract the last name from a list of names using the TEXTAFTER function, start with the formula: `=TEXTAFTER(cell, " ", -1)`. In this formula, the first argument is the cell containing the name, while the second argument specifies the delimiter, which is a space (indicated by `" "`). The instance number is set to -1 to retrieve the last name. After creating the formula, you can copy it into the cells below to apply it to additional names.