Capital Budget Data Analysis Chapter

Total Length: 720 words ( 2 double-spaced pages)

Total Sources: 2

Page 1 of 2

River County's Capital Budget

River County Capital Budget

Here at River County we have put together a capital budget because we are planning to make several principal achievements for the next year of business in 2012 because we believe that after further evaluation of the investments we have made in 2010 has helped us determine which items are beneficial to the company and the consumer. What we must ask ourselves at River County is "If we continue to purchase these types of items in the future, will the profit to our corporation be larger that the expenditure of the asset?" We realize that these items do vary; however, we are able to see the positives and negatives of these smaller and larger units by not only calculating the different costs and expected years of the product or asset, but to look at the company's averages, as well.

In reference to the excel spreadsheet that our managers have put together based on last year's cost of expenses, we have looked at two possible assets that are bought to assist our business in the distribution of goods and services as well as construction and maintenance at our facility which was the garbage truck and bull dozer.
We also have two possible assets that we made a decision to purchase that we bought that are a couple of goods that we currently provide inside our store that was based on sales from last year which are the lawn mowers and activity centers that we advertised and put on the market. As you can see by purchasing the garbage truck and bull dozer, the advantage of these two pricey investments are expected to last at least 10 and 8 years which is a lot more than some of our smaller items that we carry in the store. Even though these two items are a major investment and should be considered carefully, the annual percentage at which these two decline are only at a rate of 20 and 25% which is average according to the calculations. Even after 10 years of owning and operating the garbage truck, the end value of the expense is still….....

Show More ⇣


     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


Related Essays

Capital Budgeting Case Study

following report will examine the financials relating to this decision, and the decision-making heuristic. Decision-Making The decision at hand is essentially a capital budgeting decision. There are a few different ways to evaluate a capital budgeting decision. The most common is the net present value (NPV) technique. This relies on discounted future cash flows to make the decision. The principle behind the use of discounted cash flows is that money earned today can be reinvested, and because of that, a pound earned in the future is inherently worth less than a pound earned today. The value of future money decreases over time. The NPV method discounts those future cash flows back to… Continue Reading...

McKenzie Corporations Financial Capital Budgeting

Mckenzie Corporation's Capital Budgeting Given value of Mckenzie in different scenarios, Economic Growth Probability Without Expansion With Expansion Low $20,000,000 $22,000,000 Normal $25,000,000 $32,000,000 $43,000,000 $52,000,000 Expected value of the company within one year with Expansion is as follows: = Formula of E (value of company) = "P (Low)*V (Low) + P (Normal)*V (Normal) + P (High)*V (High)" =0.3*22,000,000 +0.5*32,000,000 +0.2*52,000,000 = 6,600,000 + 16,000,000 + 10,400,000 = $33,000,000 = $33 Million. Expected value of the company within one year without Expansion is as follows: = P (Low)*V (Low) + P (Normal)*V… Continue Reading...

Amazon Capital Decisions

There are definite variations and differences when it comes to capital budgeting and resource allocation. Amazon typifies one of the outliers that exists. Of course, that would be the valuation and other fiscal perceptions related to internet companies. The “dot-com bubble” that happened around 2000 proves that there has been some blowback and static when it comes to the proper valuation of internet companies. It is much more of a refined art nearly a generation removed from that bubble. However, Amazon faces a lot of questions and challenges to their capital spending and budgeting. Perhaps that skepticism is not as… Continue Reading...

Health Care Administration Health IT Architecture or Infrastructure

earned on the subsequent best use of the assets. Opportunity cost is a significant concept in capital budget because it is a cost that does not essentially encompass the use of cash outflows but has to be taken into account for the reason that it mirrors the foregone profit that could have been somewhere else. Basically, opportunity cost signifies the lost chance… Continue Reading...

Chief Executive Officer CEO of Durango Manufacturing Company

the procurement, custody, and expenditure of finances. The responsibilities comprise of financial planning, capital budgeting analysis, management of cash and marketable securities in addition to credit analysis. Imperatively, a financial manager fundamentally deals with the cash flows of a corporation. The financial manager is of great importance to a firm owing to the fact that cash flows are a determining factor of the feasibility of particular investment and financing decisions. Furthermore, a financial manager has great competence regarding the impact of monetary policies on the accessibility of credit and also cost of funds. Therefore, this is beneficial in guaranteeing that the firm has… Continue Reading...

The Role of Senior Manager in Eldercare

in healthcare organizations will encompass a wide range of specific skills and competencies, including those related to coordination, strategic planning, capital budgeting and cost accounting, marketing, advocacy, and interfacing with policymakers, community allies, and stakeholders. The role of the senior manager is multifaceted and varied, and may shift on an almost daily or even hourly basis. At times, the senior manager will function as a visionary leader who devises strategies for planned organizational change. Other times, the senior manager embodies a transformational style of leadership to empower colleagues and subordinates, particularly in an institution with departmental divisions. The senior executive in an eldercare organization may also work with financial planning… Continue Reading...

sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Capital Budget" (2011, June 10) Retrieved July 5, 2025, from
https://www.aceyourpaper.com/essays/capital-budget-118568

Latest MLA Format (8th edition)

Copy Reference
"Capital Budget" 10 June 2011. Web.5 July. 2025. <
https://www.aceyourpaper.com/essays/capital-budget-118568>

Latest Chicago Format (16th edition)

Copy Reference
"Capital Budget", 10 June 2011, Accessed.5 July. 2025,
https://www.aceyourpaper.com/essays/capital-budget-118568