CapEx or Capital expenditure is the expenses a business incurs in order to generate profits in the future. The type of industry in which a company operates mainly defines the disposition of its CapEx. So, in an IT environment, that could be servers, could be PCs, could be buying software, intellectual property, patent, or could be the engineering time needed to bring an asset into service. Capital expenditures can also include the upgrades and additions to the existing assets.
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