Construction Equipment A+ Attached Files: Capital Budgeting Summary.alsx (11.013 KB) 2005 Cat DBT Crawler Dozer (3).docx A+ (120.153 KB) 2016 Cat 966M Wheel Loader (5) docx A+ (106.595 KB) Peterbilt 348 4 (31 docx A+ (105.601 KB) 2021 Western Star 470058 6x4 T (6) docs A (117.975 KB) Our construction project manager has 4 pieces of equipment to be added to the yard. (at a general contractors work site) Do capital analysis on all 4 pieces of equipment and enter the results in the summary excel form. Perhaps you could use Falcon Crest as a template Make a decision as to which pieces of equipment are most profitable using the profitability index Each auction sheet has various facts and information on them, you may or may not need all the information in your calculations Attached are 4 auction bid sheets of the equipment and an excel summary sheet. Submit your worksheets that you used to calculate the various factors. They should be interactive worksheets at best. An auction involves updateing prices of equipment so try that just to test your excel work Submit your work (show your work) and submit the summary worksheet This is a one and done submission Select Styles Editing 2005 Cat D8T Crawler Dozer Item Number 5752023 Location Stringtown, Oklahoma, United States. 74569 Auction Date Dec 6, time TBD US $84,000 Meter Reading 26,109 Hours Serial # KPZ00698 Cost of Capital 10% (due to age of equipment) Hurdle rate 10% Cash Flow $10,500 per year for 10 years Depreciation 40,000 hours, Salvage $4,000, annual hours 4,000 IRON PLANET Company cannot use financing sources available under its cost of capital average with local banks and lendin companies on this age of equipment. Therefore the cost of capital is higher. 2 I this file, click enable editing Enable Editing CAST IRON 2016 Cat 966M Wheel Loader Item Number 5721824 Location Hope Mills, North Carolina, United States. 28348 Auction Date Dec 6, time TBD US $81,000 Salvage $1,000 Meter Reading 4,825 Hours Serial # CAT0966MCR8D00203 Enclosed Cab, Air Conditioner, Air Ride Seat, Joystick Steering, Auxiliary Hydraulic Plumbing, Life of asset: 10year Cash Flow $12,200 Cost of Capital 7% Hurdle rate 7% 8 IRON PLANET Peterbilt 348 4,000 gal 6x4 Water Truck Item Number 5702336 Location Humble, Texas, United States. 77396 Auction Date Dec 6, time TBD Mileage 21,461 Miles VIN 2NP3LJ0X6KM614721 US $75,000 Depreciation total 50,000miles, 4,000 annual miles Salvage $5,000 Cash Flow $14,000 per year Cost of Capital 7% Hurdle rate 7% 10 year life DT306 18 IRON 2021 Western Star 4700SB 6x4 T/A Dump Truck Item Number 5606401 Location Quaker City, Ohio, United States. 43773 Auction Date Dec 6, time TBD ITEM DETAILS Mileage 23,573 Miles VIN 5KKHAXDV2MPMK9019 Detroit DD13 6 Cylinder 12.8L Diesel 525 hp Engine, US $89,000 Cost of Capital 7% (new equipment rate) Hurdle Rate 7% Cash Flow $13,700 Depreciation 10 year SL, Salvage $2,000 > B SUMMARY Equipment: Picture and Title: 2005 Cat D8T Crawler 2016 Cat 966M Dozer Peterbilt 348 4 Wheel Loader 2021 Western Star 47005B 6x4 T Initial Investment $ 84,000 $ 81,000 $ 75,000 $ 89,000 Salvage Net Annual Income Net Annual Cash Flow $ 10,500 $ 12,200 $ 14,000 $ 13,700 Project Life 10 10 10 10 Depreciation Annual Accounting Rate of Return. Payback period NPV Profitability index Requirement 1: using separate tools and techniques, calculate the information and fill in the summary. Requirement 2. Which projects should rank first and why? H