Question: Which of the following purchases would be considered capital investments

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?





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  • CreatedAugust 27, 2014
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