CAPEX (capital expenditure)A capital expenditure (CAPEX) is money invested by a company to acquire or upgrade fixed, physical, non-consumable assets, such as buildings and equipment or a new business. There are two types of CAPEX – those that are invested in to maintain existing levels of operation within a company and those that are invested in something new to foster future growth. Customarily, regardless of the manner of investment, a CAPEX is money spent with the intent of initiating future cash flow and a substantial ROI. CAPEX’s counterpart, operational expenditures (OPEX), refers to the day-to-day costs of operation. A similar but not closely related term, forex, stands for foreign exchange. See also: enterprise asset management (EAM), cost management, adaptive enterprise, capacity planning, business impact analysis (BIA) Continue reading about CAPEX: > More on the difference between CAPEX and OPEX > Capital expenditures (CAPEX) > What's all this fuss about telecom carrier CAPEX? > Hybrid hosting -- marrying hosted cloud environments with little CAPEX
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| This word suggested by: Brita Van Fossen | Last updated on:
Dec 16, 2011
Editorial Director: Margaret Rouse
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