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Creating a capital budget in Microsoft Excel involves several steps. Here's a simplified process:
1. Open a new Excel spreadsheet. Label the first column as "Items" and the subsequent columns as "Cost", "Quantity", "Total Cost", etc.
2. List all the capital expenditure items in the "Items" column. These could be machinery, equipment, buildings, etc.
3. Fill in the cost per item and the quantity for each item.
4. In the "Total Cost" column, multiply the cost per item by the quantity for each item.
5. Sum up all the total costs to get the total capital budget.
6. You can also add columns for depreciation, salvage value, and useful life if you want to calculate the net present value (NPV) or return on investment (ROI).
Remember, the numbers you use can be hypothetical or from a real company. Always ensure the data you use is publicly available and not confidential.
Please note that this is a simplified version of capital budgeting. Real-world capital budgeting can be much more complex and may require professional financial advice.
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Customize the blue input fields with your investment details, and the template will automatically calculate the results in the tables and charts, providing a quick glance at each project's crucial metrics, such as cash flow, net present value, and breakeven point. Other charts calculate the return on investment (ROI), profitability index, and payback period based on the provided inputs.
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