capital cost
Definition
The one-time costs associated with a project, including the price of purchased assets such as land, equipment, or other supplies, and the cost of going into debt or issuing stock in order to fund the project. Calculating alternate capital costs allow a business to decide which funding models will provide the best net return on investments.
Use capital cost in a sentence
“ The capital cost was a factor and we had to make sure that we did not go over budget cause that would hurt us badly. ”
“ The capital cost of starting the organic farm was huge and with lagging sales at all three of its distribution points, it was in danger of going under. ”
“ After completing the projections they determined the capital cost to be about $20 million dollars, but it would eventually create an additonal $40 million in revenues per year. ”
