Looking at River County program for several capital acquisitions for the coming twelvemonth which include the purchase of two new refuse trucks at $ 150. 000 each. one new bulldozer at $ 240. 000. three new siting lawn mowers at $ 16. 000 each. and building of an activity centre in the portion for $ 650. 000. The expected life-time of the assorted capital points is 10 old ages for the refuse trucks. 8 old ages for the bulldozer. 5 old ages for the lawn mowers. and 40 old ages for the activity centre. Due to the current recognition evaluation of River County. River County was approved for a 6 % involvement rate on all vehicles and lawn mowers. and a 3 % involvement on the activity centre. The entire cost to finance both refuse trucks for one twelvemonth is $ 20. 380. 19 and the entire cost is $ 203. 801. 90 for 10 old ages. The annually cost to finance the bulldozer is $ 38. 648. 63 and the entire cost is $ 309. 189. 04 for 8 old ages.
The entire cost of financing all three lawn mowers for a twelvemonth is $ 11. 395. 03 and the entire cost for 5 old ages is $ 56. 975. 15. The annually cost to finance the activity centre is $ 28. 120. 55 and the entire cost is $ 1. 124. 822. 22 for 40 old ages. The entire cost for the capital budget from twelvemonth 1 to twelvemonth 5 will be $ 126. 664. 95. The entire budget cost from twelvemonth 6 to twelvemonth 8 will $ 115. 269. 92 and from twelvemonth 9 to 10 $ 76. 621. 29. From twelvemonth 10 unto twelvemonth 40. the budget would be $ 28. 120. 55 for the activity centre. However. River County would pay off the lawn movers in 5 old ages. bulldozer in 8 old ages. and refuse trucks in 10 old ages the issue of depreciation stills needs to be addressed.
The current value of the equipment would necessitate to be appraised to find if it is still operational harmonizing to River County criterions. or do the equipment demand to be replaced. If River County decides to replace the equipment so the gross from the barbarian would be used to re-invest in to new equipment and the capital budget would be updated. With the current River County budget the revenue enhancement grosss received from the county would be more than sufficient. but if there is a budget short autumn. River County could publish 5 twelvemonth municipal bonds to cover the cost.
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