Capital Costs

Capital costs refer to the expenses incurred to acquire or upgrade physical assets, such as buildings, machinery, or equipment. These costs can include the purchase price, installation fees, and any necessary renovations or improvements. They are typically long-term investments, as the assets will be used over many years. In business, managing capital costs is crucial for maintaining financial health and ensuring sufficient resources are available for growth or expansion. Essentially, capital costs represent the initial financial outlay required to obtain the tools necessary for a business or project to operate effectively.