capital cost
Upfront asset expenditure
Capital cost is the one-time expense of acquiring or building a long-term asset—equipment, buildings, infrastructure.
Distinguished from operating costs, which recur: The capital cost of the factory was enormous, but running costs are low.
In business planning, capital costs require upfront investment before generating returns.
Also called capital expenditure or capex.
Money paid for something
- disbursementDistribution of funds
- purchase priceMoney paid for acquisition
- procurementObtaining goods externally
- expenseMoney paid out
allocation · budget · funding · payment · invoice · valuation · appraisal · assessment
Gradual debt reduction schedule
- write-offRecorded value reduction
- useful lifeExpected functional duration
- salvage valueAsset's worth when retired
- book valueAsset minus accumulated depreciation
asset value · straight-line · wear and tear · obsolescence · fixed assets · tangible assets · intangible assets · balance sheet
Raising capital through borrowing
- loanBorrowed money repaid later
- leverageBorrowed capital for amplified returns
- underwritingRisk evaluation and acceptance
- principalChief school administrator
collateral · repayment · return on investment · payback period · hurdle rate · discount rate · net present value
Government-built community structures
- highwayMajor road for travel
- bridgeStructure spanning an obstacle
- tunnelEnclosed underground route
- railwayTrack system for trains
airport · water supply · sewerage · telecommunications · electricity grid · urban planning · environmental impact · zoning
Initial startup capital infusion
- angel investmentPrivate funding for startups
- bootstrapStart without external resources
- crowdfundingRaising capital from masses
- incubatorControlled warming enclosure
accelerator · pitch deck · equity stake · business plan · burn rate · runway · sweat equity
outlay
Money paid for something
- disbursementDistribution of funds
- purchase priceMoney paid for acquisition
- procurementObtaining goods externally
expense · allocation · budget · funding · payment · invoice · valuation · appraisal · assessment · initial investment
amortization
Gradual debt reduction schedule
- write-offRecorded value reduction
- useful lifeExpected functional duration
- salvage valueAsset's worth when retired
book value · asset value · straight-line · wear and tear · obsolescence · fixed assets · tangible assets · intangible assets · balance sheet · revaluation
debt financing
Raising capital through borrowing
- loanBorrowed money repaid later
- leverageBorrowed capital for amplified returns
- underwritingRisk evaluation and acceptance
principal · collateral · repayment · return on investment · payback period · hurdle rate · discount rate · net present value
public works
Government-built community structures
railway · airport · water supply · sewerage · telecommunications · electricity grid · urban planning · environmental impact · zoning · land acquisition
seed funding
Initial startup capital infusion
- angel investmentPrivate funding for startups
- bootstrapStart without external resources
- crowdfundingRaising capital from masses
incubator · accelerator · pitch deck · equity stake · business plan · burn rate · runway · sweat equity
- costsoverhead
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- depreciationdepreciation, straight line, straight-line, vehicle depreciation, accelerated
capital costoperating expenses
Routine business costs
operating costs · variable costs · overhead · maintenance costs · consumables
capital costreturn on investment
Profit relative to cost
capital gains · revenue · income · proceeds · investment return
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