Question
Consider of the following statement is/are correct about
Capital expenditures (CAPEX)? I. These are often used to undertake new projects or investments by a company. II. The purpose of CAPEX is to expand a company's ability to generate revenue and earnings. III. CAPEX can include the purchase of the Manufacturing equipment. Which of the above statement is/are correct?Solution
Capital expenditures are often used to undertake new projects or investments by a company. Typically, the purpose of CAPEX is to expand a company's ability to generate revenue and earnings. Capital expenditures can include the purchase of the following: 1. A facility or factory, including an upgrade or expansion 2. Vehicles, such as trucks used for the delivery of products 3. Manufacturing equipment 4. Computers 5. Furniture
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