What term is commonly used to describe the financial model where expenses are incurred upfront for the acquisition of physical infrastructure?OpexCapexTCOROI
Question
What term is commonly used to describe the financial model where expenses are incurred upfront for the acquisition of physical infrastructure?OpexCapexTCOROI
Solution
The term commonly used to describe the financial model where expenses are incurred upfront for the acquisition of physical infrastructure is Capex, which stands for Capital Expenditure. This term is used when a company invests in physical assets like property, industrial buildings or equipment. This is considered a capital expense and it's often used to undertake new projects or investments. This type of spending is made by companies to increase the scope of their operations or add some long-term value.
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