capital expenditures (capex)

What are the Challenges Associated with CapEx?

While CapEx can drive growth, it also comes with challenges:
1. High Initial Costs: Large upfront investments can strain cash flow and financial resources.
2. Uncertainty: The future benefits of CapEx investments can be uncertain, especially in volatile markets.
3. Depreciation: Physical assets depreciate over time, which can impact the financial statements and tax obligations.
4. Implementation Risks: There can be risks associated with the acquisition and integration of new assets, including delays and additional costs.

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