Capital Budgeting Exercises

1
Capital Budgeting Exercises
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Roachdale (exercise 1) due March 31

• Do NOT exceed capital budget maximum
• Dont spend less, the opportunity to build this
  stuff may not come again!
• You may break requests up spread them out over
  several years, move them forward backwards in
  time, etc.
• You should consider strategy sequencing
• Does anything get left out? If so, what, and
  what to do about it?

3
Exercises 6 7 due April 7

• When do benefits costs occur?
• Future dollars should be reduced to NPV
• Current dollars should not
• Your determination of the years to maintain the
  new road is significant

4
Exercise 10 due April 7

• Self-explanatory