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A capital expenditure (CapEx) is amount of money companies use to purchase new equipment, upgrade or extend the lifespan of an asset. Capital expenditures are intended to be utilized to ensure the financial health of the company. Capital expenditures are considered to be long-term investments, meaning the assets purchased are able to last for at least one year. Read on to learn more about many types of public expenditure . Understanding Different sorts of public expenditure Although the expenditures are beneficial to a company however, they usually require a substantial amount of cash. Businesses must be prepared in order to generate needed revenue to pay for capital expenditures. Capital expenditures are typically used to improve operational efficiency, increase revenue in the long term or to improve the assets that are already in the business. Capital expenditures are distinct from other types that are focused on short-term operational expenses such as expenses for ov