CAPEX is the short form of capital expense, any capital expenditures that are used to acquire physical assets are referred to as CAPEX. As a result of this capital spending the assets that are acquired could may be in the form of property such as land or buildings, as well as equipment for an office or to set up a manufacturing floor.
CAPEX can also be associated with the decision to upgrade physical assets by making improvements or otherwise refurbishing the property or equipment along with being related to the acquisition of new assets.
Amount of CAPEX
When the task will require borrowing funds then understanding the amount of CAPEX that is involved in acquiring these types of assets, or in refurbishing existing ones, can be very helpful.
