capital-expenditure

Vocabulary Word

Definition

'Capital expenditure', or 'CapEx', refers to the money businesses spend on long-term physical assets or improvements to these assets. It's big money spent on things that last a long time.

Examples in Different Contexts

In infrastructure development, 'capital expenditure' is spending on major physical projects. An urban planner might state, 'Our capital expenditure this year is dedicated to improving public transportation networks.'

Practice Scenarios

Tech

Scenario:

Our server capacity has been straining with increased data traffic. We need to look into long-term solutions.

Response:

That's correct. It's time for a capital expenditure on more advanced servers to handle the increasing data traffic.

Impact

Scenario:

We're committed to reducing our carbon footprint. This will require significant measures to make our infrastructure more sustainable.

Response:

Absolutely. Our capital expenditure on renewables like solar panels can effectively reduce our carbon footprint.