0
Cost of capital, i.e., interest payments and cash-flows out, impact the total cash available to invest in capital goods. For example if you borrow $100,000 to purchase a new Pizza oven and it brings in an additional $1000/month of profit but the monthly interest on the loan payment is $1500, then it is a bad capital expenditure with a negative effect on the business. If you borrow the same but bring in $5000 of additional profit per month it is a good investment. The precise calculation of this is about 20 layers more complicated but you get the idea.
Add your answer:
Earn +20 pts
What were American wireless capital expenditures in 2001?
Wireless capital expenditures were $19.5 billion in 2001
What are unfinanced capital expenditures?
Unfinanced means that the money was not borrowed from anyone. Capital expenditures is money spent on buildings and equipment. Therefore, unfinanced capital expenditures is money spent on buildings and equipment that is not borrowed.
Does EBIDA include Capital expenditures?
No
What capital expenditure mean?
Capital expenditures are those expenditures which will provide benefits to the business for more than one fiscal year.
What is the difference between capex and revex?
CAPEX= Capital Expenditures REVEX = Revenues Expenditures
What were Capital expenditures for the U.S. pulp and paper industry in 1991?
Capital expenditures for the U.S. pulp and paper industry in 1991 were about $17 billion
What were Capital expenditures for the U.S. pulp and paper industry in 1997?
Capital expenditures for the U.S. pulp and paper industry in 1997 were about $10 billion
What were Capital expenditures for the U.S. pulp and paper industry in 1998?
Capital expenditures for the U.S. pulp and paper industry in 1998 were about $8.2 billion
What were Capital expenditures for the U.S. pulp and paper industry in 1999?
Capital expenditures for the U.S. pulp and paper industry in 1999 were about $7.2 billion
Capital expenditures include?
Capital expenditures include all investments in fixed assets (PPE investments or purchase of PPE on the Cash Flow Statement).
What were Capital expenditures for the U.S. pulp and paper industry in 1990?
Capital expenditures for the U.S. pulp and paper industry peaked in 1990 at about $18 billion
Why it is important to distinguish capital expenditures from revenue expenditures for tax purpose?
Because it is important. Capital expenditure = non-deductible Revenue expenditure = deductible
