During the discovery phase, a project manager analyzes expenses used to acquire or upgrade physical assets such as equipment. What type of expenses are these?
Administrative Expenses
Operational Expenses
Capital Expenses
Variable Expenses
Capital Expenses (CapEx) are funds used to acquire or upgrade physical assets like equipment, buildings, or property that will benefit the project over the long term. These are significant investments considered during the discovery phase to assess project feasibility. Operational Expenses (OpEx), in contrast, are the ongoing costs required for the day-to-day functioning of a business, such as salaries and utilities, and are not related to asset acquisition.
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