Capital expenditureCapital expenditure is the amount invested in the business with aim of either buying long term assets ormaintenance of the long term assets.In the example provided, it is shown that the year 2005-2006, $275 150 198 000 was injected into thebusiness to either maintain the existing long term asset or to purchase a financial asset (not a nonfinancial asset)In the year 2006-2007, upon revision of the budget, the amount used for to maintain the assets wasreduced to $181 895 634 000. This is likely to be due to availability of cheaper labor to accomplish thework.In the yea ...
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