Part 2: Cash Disbursements for Precision Machines
The second step in this lesson is to set the cash disbursements for precision machines. Most of the values have been filled in, so it’s just a matter making a few simple calculations with excel.
- Student: Martin Gibson
- Textbook: Capital Budgeting
- Course: FIN 370
Material purchases can be determined by multiplying each revenue cell by the rate of 50%.
The next step is to find the total in each column. The quickest way to perform this step is by using the SUM function in excel. Now you should have fully totaled columns in each yellow cell like those pictured below.
Precision Machines Step-by-Step
Check out our three part series on precision machines.