
capital investment
Capital investment refers to the funds that a business or individual allocates to acquire or upgrade physical assets, such as machinery, equipment, or buildings, which are essential for producing goods or services. This type of investment is aimed at fostering long-term growth and improving operational efficiency. Unlike regular expenses, capital investments are typically substantial and intended to generate returns over several years. By investing capital, entities position themselves for future profitability and competitiveness in their respective markets.