Capital Expenditure (Investments & Retirement) - Definition, Examples, Advice | Bolder Money

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Definition

Funds spent by a business to purchase, upgrade, or maintain physical assets like equipment or property.

What to consider

Weigh the long-term benefits against the initial cost.
Consider how these investments can boost productivity.
Review financing options to manage cash flow effectively.

Real world scenarios

To expand his business, Ben made a capital expenditure by purchasing new machinery that would increase production efficiency.

Related terms

Investments & Retirement

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