MANAGEMENT

Detailed explanation-1: -Definitions and Types of Capital Equipment For equipment to be considered capital equipment, it must meet the following criteria: The acquisition cost or value must equal or exceed $5, 000. The useful life must be more than one year. It must be a tangible item that is stand-alone and moveable.

Detailed explanation-2: -The funds for capital investment can come from a number of sources, including cash on hand, though big projects are most often financed through obtaining loans or issuing stock. Examples of capital investments are land, buildings, machinery, equipment, or software.

Detailed explanation-3: -Capital equipment is an article of nonexpendable, tangible property with a useful life of more than one year, and an acquisition cost of $5, 000 or more per unit. The $5, 000 value threshold includes: The item itself; Expenditures necessary to put the item in place; and.

Detailed explanation-4: -Capital investment is the amount invested in a company to enhance its business objectives. Also, the individual/entity can earn an income or recover the invested capital from earnings generated by the company over the years.