Capital Project


DEFINITION of 'Capital Project'

A long-term investment made in order to build upon, add or improve on a capital-intensive project. A capital project is any undertaking which requires the use of notable amounts of capital, both financial and labor, to undertake and complete. Capital projects are often defined by their large scale and large cost relative to other investments requiring less planning and resources.

BREAKING DOWN 'Capital Project'

Infrastructure projects such as roads, railways and dams are the most common examples of capital projects in the public sphere. Capital projects are also common in the corporate world as well, as firms will allocate large sums of resources in order to build upon or maintain capital assets, such as machinery or a new mining project. In both cases, capital projects are typically planned and debated for a long period to determine the most efficient and resourceful method of completion.

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    A profit and loss (P&L) statement, or balance sheet, is essentially a snapshot of a company's financial activity for ... Read Full Answer >>
  3. How do dividends affect the balance sheet?

    Dividends paid in cash affect a company's balance sheet by decreasing the company's cash account on the asset side and decreasing ... Read Full Answer >>
  4. Are dividends considered an expense?

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    The only account recorded on the balance sheet, when dividends are declared and before they are paid out to a company's shareholders, ... Read Full Answer >>
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