The value of microcomputer modeling tools and spreadsheets to help college institutional researchers analyze proposed capital projects is discussed, along with strengths and weaknesses of different software packages. Capital budgeting is the analysis that supports decisions about the allocation and commitment of funds to long-term capital investment projects. For capital projects, modeling techniques can be used to test the implications of various key factors affecting different options, and to help determine the best policy and operational alternatives. Steps in the analysis include: gathering such information as space requirements, staffing levels, and operating budget of the relevant programs or functions; summarizing these data and making calculations (e.g., gross square feet, recoverable and unrecoverable costs); reviewing cash flow implications based on principal and interest payments over the life of the project, incorporating applicable overhead recovery formulas, and calculating the net present value of the cash flow. For academic and research facilities, the model assesses the short-term and long-term impact of the project on the institute's overhead rate. In addition to identifying the benefits of spreadsheets, the following types of spreadsheet packages are reviewed: Multiplan and Lotus 1-2-3. (SW)