08 / 15 · GLOSSARY
08 / 15CAPEXDificultad

Initial Investment

The upfront expenditure to start the business: machinery, equipment, installations, software. Not a monthly expense — it's amortized.

Analogía

It's like the entry price of the business. The higher the CAPEX, the longer it takes to recover the investment.

Ejemplo numérico

Underestimating CAPEX is the number-one cause of early bankruptcy. Add a 15–20% buffer for unforeseen items. Include working capital, not just equipment. Equipment: $40,000 + Installations: $20,000 + Software: $5,000 + Working capital (3 months of fixed costs): $15,000 = Total CAPEX $80,000.

Fórmula
CAPEX = Equipment + Installations + Intangibles + Working Capital
Ver tambiénPaybackCash FlowNPV

When to use it

At the start of any project, to size the total investment you need to put in before generating the first revenue.

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Definitions aligned with Blank & Tarquin, Engineering Economy, 8th edition — McGraw-Hill.