capital cost
- noun
- /ˈkæpɪtl kɔst/
- Specialized
:
costo de capital
- For example, the general investment tax credit was eliminated; the accelerated capital cost allowance ("CCA") rates for manufacturing and processing equipment were reduced from a two-year write-off to a twenty-five percent declining balance.
Examples
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But without an independent regulatory body, the attributes that distinguish renewable sources of electricity from fossil fuel generation—environmental benefits, modularity, low fuel price risk, capital cost intensity, and intermittency—are unlikely to be fairly taken into account by competitive markets.
Academic text (1995) -
The longer you wait, the higher the capital cost gets, and the smaller the final reactor design must be given a fixed project price.
Blog text (22) -
Capital costs are also important, since capital is a problem.
Blog text (5) -
Though I'm sure Apple is using previous generation tools for parts of it, some of it is inevitably high capital cost.
Blog text (26) -
In the Canadian system, capital cost allowance rates are generally slightly accelerated relative to actual depreciation rates, which can act to encourage the acquisition of innovative equipment.
Academic text (1993) -
Renewables' high capital costs, coupled with the fact that the private sector's discount rates are usually higher than the public sector's, make renewables less competitive in private markets than they are when publicly developed.
Academic text (1995) -
The main advantage of sorbent injection is its low start-up (capital) cost, which makes it a retrofit option for moderate sulfur removal where regulation permits.
Academic text (1990) -
The high capital cost of purchasing new machinery can deter smaller businesses from expanding.
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Investors consider the capital cost when evaluating the potential return on investment for a new project.
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Understanding the capital cost is crucial for businesses planning to fund their operations through loans or investments.
Synonyms
5
7.2
The minimum return a business needs on an investment to keep its market value and attract money
How Costly
- Specialized
42
2.0
Surface Forms
Morphology
The meaning 'upfront expenditure for acquiring fixed assets' is directly derivable from combining 'capital' (funds/assets used for investment) with 'cost' (monetary amount), following the standard noun–noun pattern 'X cost' = 'cost of X'. Although it is a technical/business term, the compositional relation is clear and a B1 learner who knows both constituents should be able to infer the basic meaning.
Etymology
Capital cost comes from treating capital as the money you use and cost as the price for using it. Imagine you could earn interest by putting your money elsewhere; if you use it in a project you give up that earning, and that lost earning is the capital cost, so today it means the 'cost of funds'.