A CAPEX (Capital Expenditure or CapEx) is an amount of money invested to acquire the new business or upgrade fixed assets that is invested in to maintain existing levels of operation within a company or in something new to foster future growth. A CAPEX is used repeatedly in production processes at full cost price that can be tangible (such as buildings, machinery, equipment, and facility), or can be intangible (such as patent). (Refer to the OPEX (Operational Expenditure))
Reference Definition by Investopedia: A CAPEX (Capital Expenditure or CapEx) is funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. It is often used to undertake new projects or investments by the firm. This type of outlay is also made by companies to maintain or increase the scope of their operations. These expenditures can include everything from repairing a roof to building, to purchasing a piece of equipment, or building a brand new factory.
Related Definitions in the Project: The Project Cost; Cost Estimate (Estimation); Project Controls; Economic Reviews; Project Management
