Capital Expenditure (CapEx)

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Capital expenditures, also called CapEx or CAPEX, are incurred when a company spends money on acquiring, upgrading, or maintaining assets. Assets can include properties, plants, equipment, or automation systems. Capital expenditures are not operating expenses, and they are seen as investments to a company. Almost all automation projects are considered CapEx and will directly affect a manufacturer’s operations.

To read more about evaluating automation projects, start by understanding the hidden numbers in an industrial automation project.

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