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a. Replacement of worn out equipment
b. Expansion of production facilities
c. Development of employee training programs
d. All of the above are examples of capital investment projects.
b. Expansion of production facilities is correct answer
The correct answer is (b) Expansion of production facilities.Capital investment projects are also known as Capital Expenditure (CAPEX) projects in most companies. The term Capital Investment can be applied to two different segments - (i) Money or investment by a business to purchase land, machinery or buildings (sometimes it can be applied to replacement of equipment if it crosses a certain financial threshold). (ii) Money or investment in a business which would be used to purchase fixed assets rather than used to cover the business's day-to-day operating expenses.Option (a) can be a capital investment as mentioned in definition (i) but it isn't clear whether it crosses a certain financial threshold. Option (a) and (c) are considered to be operating investments or operations expenses (OPEX) since it supports current operations and does not expand/develop or change the business strategy/segment in terms of location etc. In other words, there is no "expansion of production facilities". However, this does not imply that purchases to sustain operations would not qualify as capital investments.Option (b), on the other hand, completely fulfills the criteria of Capital Investment since it would involve purchase of additional machinery and/or buildings and/or fixed assets
No4 is the best answer............................
***(d)-All of the above are examples of capital investment projects.***** is the answer.
d. All of the above are examples of capital investment projects.
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D. All f the above are examples
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