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 part 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.
is this spreadsheet going have units and years, don't have a % to ues
To prepare a capital budget for the items to be acquired, we will list the items, their estimated lifetimes, and their per unit and total costs:
1. Two new garbage trucks:
- Estimated lifetime: 10 years
- Per unit cost: $150,000
- Total cost: 2 trucks x $150,000 = $300,000
2. One new bulldozer:
- Estimated lifetime: 8 years
- Per unit cost: $240,000
- Total cost: $240,000
3. Three new riding lawn mowers:
- Estimated lifetime: 5 years
- Per unit cost: $16,000
- Total cost: 3 mowers x $16,000 = $48,000
4. Construction of an activity center:
- Estimated lifetime: 40 years
- Total cost: $650,000
Now let's summarize the information in a capital budget:
Item | Estimated Lifetime | Per Unit Cost | Total Cost
---------------------|-------------------|--------------|-------------
Garbage Trucks | 10 years | $150,000 | $300,000
Bulldozer | 8 years | $240,000 | $240,000
Riding Lawn Mowers | 5 years | $16,000 | $48,000
Activity Center | 40 years | $650,000 | $650,000
The total capital budget for all the items to be acquired is $1,238,000.
To analyze the scenario and prepare a capital budget, we need to gather the following information:
1. Capital items to be acquired:
- Two new garbage trucks
- One new bulldozer
- Three new riding lawn mowers
- Construction of an activity center
2. Estimated lifetime of each capital item:
- Garbage trucks: 10 years
- Bulldozer: 8 years
- Riding lawn mowers: 5 years
- Activity center: 40 years
3. Cost of each capital item:
- Garbage trucks: $150,000 each
- Bulldozer: $240,000
- Riding lawn mowers: $16,000 each
- Activity center: $650,000
Now let's calculate the per unit and total costs for each capital item:
1. Garbage trucks:
- Per unit cost: $150,000
- Total cost: $150,000 * 2 = $300,000
2. Bulldozer:
- Per unit cost: $240,000
- Total cost: $240,000
3. Riding lawn mowers:
- Per unit cost: $16,000
- Total cost: $16,000 * 3 = $48,000
4. Activity center:
- Per unit cost: $650,000
- Total cost: $650,000
Now, let's summarize the capital budget:
- Garbage trucks:
- Per unit cost: $150,000
- Total cost: $300,000
- Estimated lifetime: 10 years
- Bulldozer:
- Per unit cost: $240,000
- Total cost: $240,000
- Estimated lifetime: 8 years
- Riding lawn mowers:
- Per unit cost: $16,000
- Total cost: $48,000
- Estimated lifetime: 5 years
- Activity center:
- Per unit cost: $650,000
- Total cost: $650,000
- Estimated lifetime: 40 years
This capital budget provides an overview of the planned capital acquisitions for River County, including the estimated lifetimes and per unit and total costs for each item.