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Which of the following is an example of a capital investment project?

 a. Replacement of worn out equipment 

 b. Expansion of production facilities 

 c. Development of employee training programs 

 d. All of the above are examples of capital investment projects.

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Question ajoutée par Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date de publication: 2015/08/03
kanchana sridevi
par kanchana sridevi , Accounts And Audit Assistant , bv rao and co

b. Expansion of production facilities is correct answer

Hasnat Noor Chowdhury
par Hasnat Noor Chowdhury , Head of Business Operations , RANCON

The correct answer is (b) Expansion of production facilities.Capital investment projects are also known as Capital Expenditure (CAPEX) projects in most companies. The term Capital Investment can be applied to two different segments - (i) Money or investment by a business to purchase land, machinery or buildings (sometimes it can be applied to replacement of equipment if it crosses a certain financial threshold). (ii) Money or investment in a business which would be used to purchase fixed assets rather than used to cover the business's day-to-day operating expenses.Option (a) can be a capital investment as mentioned in definition (i) but it isn't clear whether it crosses a certain financial threshold. Option (a) and (c) are considered to be operating investments or operations expenses (OPEX) since it supports current operations and does not expand/develop or change the business strategy/segment in terms of location etc. In other words, there is no "expansion of production facilities". However, this does not imply that purchases to sustain operations would not qualify as capital investments.Option (b), on the other hand, completely fulfills the criteria of Capital Investment since it would involve purchase of additional machinery and/or buildings and/or fixed assets

Ismael Hamad
par Ismael Hamad , Trainer , ANTONOIL DMCC , Lukoil project, WQ2

No4 is the best answer............................

Gayasuddin Mohammed
par Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

 ***(d)-All of the above are examples of capital investment projects.***** is the answer.

Yaqoub Alomar
par Yaqoub Alomar , Civil Engineer , Al-Zubeir municipality

 

 d. All of the above are examples of capital investment projects.

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khaled elkholy
par khaled elkholy , HR MANAGER , misk for import & export

d. All of the above are examples of capital investment projects......is......right........

Emad Mohammed said abdalla
par Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

  1. The correct answer was: d. All of the above are examples of capital investment projects.

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