REC 475 Lecture 16: REC 476-Capital Budgeting_Nov 28
Document Summary
Capital budget- for big purchases you have to make: ex: buying, capital improvement program/plan (cip)- Keeps you on track and keeps you ahead: capital budget process: Figure out what is most bang for your buck. Cost analysis: determine total actual cost. Turnkey costs- the things that go into the building so it isn"t just an empty building. Ex: rec center staff, exercise: estimate annual operating costs equipment. It might be $ at the beginning because it is new but then it turns into 20909$ when it gets old. Have to think about the long term cost of the building/program/whatever: identify benefits. Qualitative social benefits: cost analysis. Bonding alternatives: general obligation bonds- a city, county, or state that borrows money from investors to build something and they will pay back the investors in about 10 years. This is what people vote on in elections.
