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Major Capex
andProjectFinancing
Capital expenditures (capex) are investments or expenses to acquire or upgrade physical assets,
such as land, buildings, and equipment, or to increase the scale of operations. They are incurred
to create long-term benets for a company and increase earning capacity or reduce the cost
of doing business, but not for items to be sold at a prot. Money spent on production inputs,
inventories, personnel hiring, and training are not capex; they are operational expenditures.
Hence, planning for capex is part of planning for nancing of projects, which is different
from nancial planning for operations. Capex decisi ...