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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  3. Intangible Asset

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  4. Capital Asset

    A type of asset that is not easily sold in the regular course ...
  5. Capital Asset Pricing Model - CAPM

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  1. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  2. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
  3. How much working capital does a small business need?

    The amount of working capital a small business needs to run smoothly depends largely on the type of business, its operating ... Read Full Answer >>
  4. What does high working capital say about a company's financial prospects?

    If a company has high working capital, it has more than enough liquid funds to meet its short-term obligations. Working capital, ... Read Full Answer >>
  5. How can working capital affect a company's finances?

    Working capital, or total current assets minus total current liabilities, can affect a company's longer-term investment effectiveness ... Read Full Answer >>
  6. What can working capital be used for?

    Working capital is used to cover all of a company's short-term expenses, including inventory, payments on short-term debt ... Read Full Answer >>

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