Explore BrainMass

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.

Solution Preview

Please see below and the attached Excel file for your tutorial. Please remember that this is a tutorial which was written to help you write the final two to three page word document report you have to pass for your class.

River County
Capital Project Budget

Capital Budget Item Estimated Lifetime (years) Per Unit Cost Total Cost
Two (2) New Garbage truck 10 ...

Solution Summary

River County capital acquisitions are determined. The expert explains the budget to the country council.