[Recommended]Capital Expenditure Budget

Capital Expenditure BudgetInstructions BUSN278 Budgeting and Forecasting Template Instructions Use this spreadsheet structure to lay out the various sections of your project. The purpose of…

Capital Expenditure BudgetInstructions
BUSN278 Budgeting and Forecasting Template Instructions
Use this spreadsheet structure to lay out the various sections of your project.
The purpose of this spreadsheet is to make it easy for your professor to locate the
various sections of your project. Please don’t alter the worksheet tabs or titles.
After you finish your calculations in this spreadsheet, you will have to
create a written report in which you take screenshots from this spreadsheet
and put them in the Budget Proposal Template, along with necessary
explanations. Detailed instructions for how to write the report
are found in the Budget Proposal Template, a Word document.
2.1 & 2.2 Sales Forecast
Put your sales forecasting calculations here.
Year 1 Year 2 Year 3 Year 4 Year 5
Sales – Products 500,000 535,500 573,521 614,240 657,852
Sales – Services 7,500 8,033 8,603 9,214 9,868
Products – Volume Year 1 Year 2 Year 3 Year 4 Year 5
Sales – units 500.00 525.00 551.25 578.81 607.75
Avg. Price / unit 1,000.00 1,020.00 1,040.40 1,061.21 1,082.43
Services – Volume Year 1 Year 2 Year 3 Year 4 Year 5
Service units 75.00 78.75 82.69 86.82 91.16
Avg. Price / Service 100.00 102.00 104.04 106.12 108.24
Sales – ( $ ) Year 1 Year 2 Year 3 Year 4 Year 5
Sales – Product ( $ ) 500,000 535,500 573,521 614,240 657,852
Sales – Services ( $ ) 7,500 8,033 8,603 9,214 9,868
3.0 Capital Expenditure Budget
Description Investment Year 1 Year 2 Year 3 Year 4 Year 5
Filling Fees 160 – 0 – 0 – 0 – 0 – 0
Renovation 25,000 – 0 – 0 – 0 – 0 – 0
Rent 5,000 5,250 5,513 5,788 6,078 6,381
Advertisement 1,000 1,000 1,000 1,000 1,000 1,000
Utilities 1,000 2,000 2,000 2,000 2,000 2,000
Initial Inventory 20,000 – 0 – 0 – 0 – 0 – 0
Total Cost 52,160 8,250 8,513 8,788 9,078 9,381
Initial Investment from owner 52,160 – 0 – 0 – 0 – 0 – 0
Interest payable @ 3.50% 53,986 – 0 – 0 – 0 – 0 – 0
Total CAPITAL EXPENDITURE 52,160 ERROR:#REF! ERROR:#REF! ERROR:#REF! ERROR:#REF! ERROR:#REF!
4.1 Cashflows
Put your detailed cash inflows and cash outflows here, also showing net cash flow.
Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Cash inflow
Sales – Products – 0 500,000.00 535,500.00 573,520.50 614,240.46 657,851.53
Sales – Services – 0 7,500.00 8,032.50 8,602.81 9,213.61 9,867.77
Cash outflow
Filling Fees 160.00 – 0 – 0 – 0 – 0 – 0
Renovation 25,000.00 – 0 – 0 – 0 – 0 – 0
Rent 5,000.00 5,250.00 5,512.50 5,788.13 6,077.53 6,381.41
Advertisement 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
Business Insurance – 0 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
Utilities 1,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Salary – Manager & Asst. Manager – 0 1,750.00 1,925.00 2,117.50 2,329.25 2,562.18
Salaries – Employees – 0 3,500.00 3,850.00 4,235.00 4,658.50 5,124.35
Health and other benefits – 0 350.00 385.00 423.50 465.85 512.44
Credit card company share – 0 12,687.50 13,588.31 14,553.08 15,586.35 16,692.98
Inventory Requirements 20,000.00 – 0 – 0 – 0 – 0 – 0
Total Cost 52,160.00 8,250.00 8,512.50 8,788.13 9,077.53 9,381.41
Initial Investment from owner 52,160.00 – 0 – 0 – 0 – 0 – 0
Interest payable @ 3.50% – 0 5,398.50 5,398.50 5,398.50 5,398.50 5,398.50
Cash flows (156,480.00) 466,314.00 500,360.69 536,819.47 575,860.55 617,666.04
Net Cash flow 2,540,540.75
4.2 NPV Analysis
Create an NPV analysis here.
Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Cash flows (156,480.00) 466,314.00 500,360.69 536,819.47 575,860.55 617,666.04
Discount Factor @ 12% 1 0.893 0.797 0.712 0.636 0.567
PV of Cash flows (156,480.00) 416,418.40 398,787.47 382,215.47 366,247.31 350,216.65
NPV = 1,757,405.29
4.3 Rate of Return Calculations
Show your rate of return calculations in this worksheet.
Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Cash flows (156,480.00) 466,314.00 500,360.69 536,819.47 575,860.55 617,666.04
Discount Factor @ 12% 1 0.893 0.797 0.712 0.636 0.567
PV of Cash flows (156,480.00) 416,418.40 398,787.47 382,215.47 366,247.31 350,216.65
IRR = 262%
4.4 Payback Period Calculations
Show your payback period calculations here.
Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Cash flows (156,480.00) 466,314.00 500,360.69 536,819.47 575,860.55 617,666.04
Discount Factor @ 12% 1 0.893 0.797 0.712 0.636 0.567
PV of Cash flows (156,480.00) 416,418.40 398,787.47 382,215.47 366,247.31 350,216.65
Payback period = 0.38
5.0 Pro Forma Financials
Put your pro forma income statement, balance sheet, and cash budget here, along with any other supporting calculations or schedules.

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