Software for Volunteer Treasurers

Budgeting Exercise 10

Evaluating Capital Expenditure Proposals

Cygnet Tennis Club


Download activity sheet for Budgeting Exercise 10 - Evaluating Capital Expenditure ProposalIn this exercise, your task is to work out the costs and benefits of two competing business capital expenditure proposals and determine which proposal would lead to better business performance. The term capital expenditure means that the expenditure goes on assets and will have a lasting value on producing income for the business.

This budgeting exercise will involve using online loan repayment calculators to calculate the required monthly/yearly loan repayments that would be necessary for a certain level of borrowing. There are many such loan repayment calculators available on the Internet.  You might try the loan repayment calculator from the St.George bank.

The task of working out which proposal is best has been made easier for you as a template is provided. The template will show how you one way to set out the problem so that it is easy to read and understand.

Download activity sheet for Budgeting Exercise 10 "Evaluating Capital Expenditure Proposals"

Download template in MS Excel workbook format

The time required to complete these exercise using the template is 15 minutes or less depending on the Excel skills of the learner.




Online higher education
help with Excel
answers to budgeting exercises