Capital Investment

Capital Investment refers to the funds invested in a business to acquire or upgrade physical assets such as property, industrial buildings, or equipment. This type of investment is typically aimed at enhancing a company’s productive capacity or efficiency over the long term.

Examples of capital investment include:

• Purchasing new machinery to increase production capacity in a manufacturing facility.
• Building a new office or factory to expand operations.
• Investing in technology upgrades, such as new software systems that improve efficiency.

Cases of capital investment can be seen in:

• A tech startup investing in servers and hardware to support its software development efforts.
• A retail chain opening new store locations to increase market presence.
• A utility company upgrading its power grid to improve reliability and service delivery.