Capital Budget Exercise

Instructions: Download the Capital Budget Exercise

Directions: In this exercise, your task is to work out the costs and benefits of two competing capital expenditure proposals and determine which proposal would lead to better business performance. The term capital expenditure will have a lasting value on producing income for the tennis club.
In this exercise, your task is to work out the costs and benefits of two competing capital expenditure proposals and determine which proposal would lead to better business performance. The term capital expenditure will have a lasting value on producing income for the tennis club.
This 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.
To use a loan repayment calculator you will need to enter:
The amount to be borrowed (the Principal)
The interest rate
The term of the loan (the number of months in duration)
The payment frequency, for this exercise use monthly
The task of working out which proposal is best has been made easier for you as I have provided an Excel template for you to use. The template will show you one way to set out the problem so that it is easy to read and understand.

Relevance: Paper accurately executes the task. cites additional references related to topic; considers additional questions and comments

Expression: Expresses opinion and idea in an organized, clear, and concise manner with connection to topic

Format: Justification is appropriate and provides clear reasoning based on content presented in the module as well as credible outside sources; cited appropriately