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What is a Capital Expenditure?

Within business the term ‘capital expenditure’ is often used; you might also see it written as CAPEX, or investment expenditure. When we talk about capital expenditure we are referring to those investments that will produce rewards at some time in the future. This investment could occur in any number of ways such as buying new equipment for a factory or developing current resources. It is usual to view capital expenditure as those investments that will provide a return for longer than just one year.

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