Capital expenses, also referred to as capital expenditures or CapEx, are funds used by businesses to acquire, maintain, and upgrade physical assets such as property, buildings, or equipment. This type of expense is typically considered to be long-term in nature and not subject to change annually like operating expenses. Investments made with these funds have the potential to generate a return on investment so long as they are made wisely and used to produce enhanced value or savings over time. Capital expenses should therefore be carefully considered prior to committing any resources.