Using the atachment, create a capital budget for acapital budget expenditures Your figures should be realistic and may involve a small amount of research. Though the figures should be realistic they need not be exact. Use a capital gains tax rate of 15%, an ordinary tax rate of 35% and a discount rate between 5% and 15% depending on the nature of the investment. At the bottom of the template give a short explanation for the choice in discount rate.

Capital Budgeting Template Year 0 1 2 3 Capital Items Capital Investment Salvage Value Capital Gains Tax 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Present Value of FCF 0 0 0 0 0 0 0 0 NPV 0 0 0 0 Investment-Related Cash Flow 0 Operating Items Revenue Operating Costs or Expenses Depreciation Expense Taxable Income Income Tax Working Capital Change in Working Capital Operating Cash Flow Free Cash Flow Additional Calculations Required Tax Basis 0 Additional Input Items Ordinary Tax Rate Capital Gains Tax Rate Discount Rate *Calculator will not work for less than 3 time periods (Time 0, Time 1 & Time 2)