Initial capital investment means the cost of acquisition or construction of a power facility or non-power facility which has been assigned to be repaid from the power revenues, including but not limited to any cost of planning, de- sign, land acquisition, construction, in- terest during construction, and testing …
What is initial investment?
Initial investment is the amount required to start a business or a project. It is also called initial investment outlay or simply initial outlay. It equals capital expenditures plus working capital requirement plus after-tax proceeds from assets disposed off or available for use elsewhere.
What is initial capital?
initial capital or ‘Capital’: means the money that you initially subscribed to invest into the Plan.
What is capital investment in simple words?
Capital investment is the procurement of money by a company in order to further its business goals and objectives. The term can also refer to a company’s acquisition of long-term assets such as real estate, manufacturing plants and machinery.
Is initial investment an equity?
Initial Equity Investment means an investment by the Investors, directly or indirectly, in the form of subscription for ownership interests in, or the making available of amounts which constitute Subordinated Liabilities to the Company (including by way of rollover of existing investments) of an amount which, in …
What are 4 types of investments?
There are four main investment types, or asset classes, that you can choose from, each with distinct characteristics, risks and benefits.
- Growth investments. …
- Shares. …
- Property. …
- Defensive investments. …
- Cash. …
- Fixed interest.
How do you calculate initial investment?
Multiply the sum by the number of years in question. Take the future value you have in mind and divide it by that sum to find out the initial investment you need.
What is initial capital cost?
a cost incurred on the purchase of land, buildings, construction and equipment to be used in the production of goods or the rendering of services. The housing will be self-funding after initial capital costs have been met.
Is initial capital an asset?
Capital is not the same as money. Instead of simply spending it like cash, you use it to create wealth through investment. Since you use capital to create wealth, it is considered an asset in your small business accounting records. Assets are items that add value to your business.
What are the 3 types of capital?
Business capital may derive from the operations of the business or be raised from debt or equity financing. When budgeting, businesses of all kinds typically focus on three types of capital: working capital, equity capital, and debt capital.
What is capital strategy?
A Capital Strategy is a high level overview of how capital expenditure, capital financing and treasury management activity contribute to the provision of services along with an overview of how associated risk is managed and the implications for future financial sustainability.
What is the difference between investment and capital?
In general, capital means the money, wealth, or financial assets of a business. These assets are held in various forms, used for expenditures, and represent a portion of a company’s net worth. The use of capital to make more money for a business is called investment.