Capital Expenditure

Definition of ‘Capital expenditure’

Capital expenditure represents payments for the acquisition of long term assets including property, plant and equipment.

Capital expenditure is sometimes abbreviated to Capex, and also called capital spending or capital expense.

Financial Projections Template Capital Expenditure Definition

The capital expenditure definition for use in the financial projections template is the amount spent during each year on the purchase of fixed assets, which are long term assets for use within the business.

The amount spent on capital expenditure is added to fixed assets and depreciated over its useful life.

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