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River County: Total cost of capital projects

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River County is planning to purchase of two new garbage trucks at $150,000 each, one new bulldozer at $240,000, and three new riding lawn mowers at $16,000 each. They also plan to build an activity center in the downtown area for $650,000. The expected life of the garbage trucks is ten years, eight years for the bulldozer, five years for the lawn mowers, and forty years for the activity center.

Create a report that will be their capital budget, showing items to be obtained, their life and the total costs.

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The capital budget for next year is $1,238,000. This is the cost of equipment and buildings that will last from five to 40 years. While there may be maintenance costs, capital costs to replacement them are far off. The schedule of items to be acquired is ...

Solution Summary

Three paragraphs describe the budget and the excel file contains a schedule of acquisitions, the capital expenditure budget, and a place for budgeting the inflows to cover the budget.

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River County capital acquisitions

Analyze the following scenario: River County is planning several capital acquisitions for the coming year. These include the purchase of two new garbage trucks at $150,000 each, one new bulldozer at $240,000, three new riding lawn mowers at $16,000 each, and construction of an activity center in the park for $650,000. The expected lifetime of the various capital items is 10 years for the garbage trucks, 8 years for the bulldozer, 5 years for the lawn mowers, and 40 years for the activity center. Prepare a capital budget for the items to be acquired, showing their estimated lifetimes, and their per unit and total costs.

Clearly label the calculations for the required components of the capital budget using Excel. Use formulas to show the interrelationships and format the cells to insert a comma if there is more than three numbers and round to the nearest whole number. Explain your budget to the county council.

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