Which of the following purchases would be considered capital investments?
Purchase Item
a. The replacement of the engine on one of the company’s aircraft is $ 190,000 (this will not increase the useful life of the plane).
b. The delivered, installed cost of a new production line is $ 140,000.
c. The cost of raw materials for the year is estimated at $ 980,000.
d. All of the computers at the help desk are being upgraded at a cost of $ 123,000.
e. To support the launch of the new product line, staff training costs are $ 100,000.
f. The cost to develop and implement the new Facebook retail app is $ 565,000.
g. The upgrade of the customer service fleet to new fuel- efficient vehicles has a cost of $ 300,000.
h. The total cost of the management succession program for the coming year is projected to be $ 230,000.
i. The cost to retrofit one of a company’s closed retail outlets into a customer service center is projected to be $ 100,000.
j. The cost of workers’ compensation insurance for the coming year is projected to be $ 200,000.

Capital Investment?

  • CreatedAugust 27, 2014
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