Create a 5 year capital budget using the information in theOffsite Catering Proposal.pdf. The extra credit project is worth up to 50 points. Points will be awarded based on a comprehensiveness and accuracy of your analysis. Your submission should be done in Word format and should include a description of how you derived your figures and what assumptions you made to reach your conclusions. Feel free to incorporate any relevant means of analysis from chapters 9 & 10 from the text in your submission. Be sure and attach the Excel spreadsheet containing your capital budget. This is an optional assignment and must be completed individually.

Your analysis should address the following items:

• Applicable depreciation of various assets using MACRS based on the types of assets.
• A forecast of change in revenues and contribution margin.

Use the assumptions below in your analysis.

• Revenues at both properties are expected to increase by 3% annually.
• Contribution margins at both properties are expected to increase by 4% annually.
• 35% Ordinary Tax Rate
• 15% Capital Gains Tax Rate
• 12% Discount Rate
• $5K in additional working capital will be needed over the duration of the 5 years and will be returned at the end of the 5th year.