What is the capital cost that must be considered for a Project?
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The capital cost of the project :
In simple words, I am defining here the capital cost of the project.
The total cost needed to bring a project to a commercially operable is called as the capital cost of the project.
Capital cost not depend on the following factors :
Capital cost includes living expenses :
Basically, the capital cost is not limited to the initial construction of a factory.
Example: fossil fuel power plant’s capital costs include the following;
The cost associated with the one-time expenditure like the acquisition of land, construct fixed assets, operational cost, repairs, maintenance, and replacement is called a capital cost of the project.
Following are some of the examples of capital cost:
Cost of the day by day working is:
Capital cost are associated with the one time fixed cost in construction that include fixed assets like building, land and equipment that is used or benifits for more than one financial year.
Capital cost includes following spends:-
Capital costs are fixed, one time expenses incurred on the purchase of land, buildings, construction and equipment used in the production of goods or in the rendering of services. In other words it is the total cost needed to bring a project to a commercially operable status.