A retailer invests $20 million in capital expenditure projects to open 15 new stores.In which category of investment is this capital expenditure most likely to fit?

Question

Quizplus · Accepted Answer

The investment in new stores is a clear example of a capital investment project aimed at increasing revenue. By opening new stores, the retailer can expand its customer base, reach new markets, and generate additional sales, all of which should contribute to an increase in revenue. The investment is not aimed at replacing old assets or introducing new technology, and therefore does not fit categories A and B.

A Retailer Invests $20 Million in Capital Expenditure Projects to Open