Fixed Capital Investment Solution

STEP 0: Pre-Calculation Summary
Formula Used
Fixed Capital Investment = Total Capital Investment-Working Capital Investment
FCI = TCI-WCI
This formula uses 3 Variables
Variables Used
Fixed Capital Investment - Fixed Capital Investment in $ term referred to as (CapEx), represents the funds that a company allocates for the acquisition, construction, expansion, or improvement of long-term physical assets.
Total Capital Investment - Total Capital Investment in $ terms refers to the overall amount of money that a company invests in a particular project, venture, or business initiative.
Working Capital Investment - Working Capital Investment in $ term refers to the amount of capital that a business invests in its day-to-day operational activities to ensure smooth and efficient functioning.
STEP 1: Convert Input(s) to Base Unit
Total Capital Investment: 20000 --> No Conversion Required
Working Capital Investment: 6000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
FCI = TCI-WCI --> 20000-6000
Evaluating ... ...
FCI = 14000
STEP 3: Convert Result to Output's Unit
14000 --> No Conversion Required
FINAL ANSWER
14000 <-- Fixed Capital Investment
(Calculation completed in 00.004 seconds)

Credits

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Created by Heet
Thadomal Shahani Engineering College (Tsec), Mumbai
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Verified by Vaibhav Mishra
DJ Sanghvi College of Engineering (DJSCE), Mumbai
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11 Cost Estimation Calculators

Capital Cost of Project with Capacity Q2 using Sixth Tenth Rule
​ Go Capital Cost of Project with Capacity Q2 = Capital Cost of Project with Capacity Q1*((Capacity of Equipment 2/Capacity of Equipment 1)^(Value of Index))*(Cost Index 2/Cost Index 1)
Capital Cost of Project with Capacity Q1 using Sixth Tenth Rule
​ Go Capital Cost of Project with Capacity Q1 = Capital Cost of Project with Capacity Q2*((Capacity of Equipment 1/Capacity of Equipment 2)^(Value of Index))*(Cost Index 2/Cost Index 1)
Fixed Cost at Breakeven Point
​ Go Fixed Cost = Production Capacity at Breakeven Point*Selling Cost per Unit-Production Capacity at Breakeven Point*Production Cost per Unit
Cash Flow
​ Go Cash Flow = ((Total Sale Revenue-Total Product Cost-Depreciation)*(1-Tax Rate))+Depreciation
Net Profit
​ Go Net Profit = (Total Sale Revenue-Total Product Cost-Depreciation)*(1-Tax Rate)
Working Capital Investment
​ Go Working Capital Investment = Total Capital Investment-Fixed Capital Investment
Total Capital Investment
​ Go Total Capital Investment = Fixed Capital Investment+Working Capital Investment
Fixed Capital Investment
​ Go Fixed Capital Investment = Total Capital Investment-Working Capital Investment
Turndown Ratio
​ Go Turndown Ratio = Fixed Capital Investment/Total Capital Investment
Turnover Ratio
​ Go Turnover Ratio = Gross Annual Sales/Fixed Capital Investment
Total Production Cost Considering Fixed Cost and Variable Cost
​ Go Total Product Cost = Fixed Cost+Variable Cost

Fixed Capital Investment Formula

Fixed Capital Investment = Total Capital Investment-Working Capital Investment
FCI = TCI-WCI

What is Capital Investment?

Capital investment, also known as capital expenditure or CAPEX, refers to the funds that a business or organization allocates for the acquisition, expansion, improvement, or maintenance of long-term assets and physical capital. These assets are typically used to generate income, provide goods or services, and contribute to the company's growth and profitability. Capital investments are a fundamental part of strategic planning and financial management for businesses in various industries.

What is Cost Estimation ?

Cost estimation is the process of estimating the total cost, typically in monetary terms, required to complete a project, construct a facility, develop a product, or provide a service. It is a critical aspect of project management, business planning, and decision-making. Cost estimation serves various purposes, including budgeting, financial planning, and assessing the feasibility of a project. Here are the key components and considerations of cost estimation

How to Calculate Fixed Capital Investment?

Fixed Capital Investment calculator uses Fixed Capital Investment = Total Capital Investment-Working Capital Investment to calculate the Fixed Capital Investment, The Fixed Capital Investment also known as Fixed Capital Expenditure (Fixed CAPEX), is a specific category of capital investment that refers to the allocation of funds for the acquisition, construction, or enhancement of long-term, non-current assets that are essential for a business's operations and do not change frequently. Fixed Capital Investment is denoted by FCI symbol.

How to calculate Fixed Capital Investment using this online calculator? To use this online calculator for Fixed Capital Investment, enter Total Capital Investment (TCI) & Working Capital Investment (WCI) and hit the calculate button. Here is how the Fixed Capital Investment calculation can be explained with given input values -> 14000 = 20000-6000.

FAQ

What is Fixed Capital Investment?
The Fixed Capital Investment also known as Fixed Capital Expenditure (Fixed CAPEX), is a specific category of capital investment that refers to the allocation of funds for the acquisition, construction, or enhancement of long-term, non-current assets that are essential for a business's operations and do not change frequently and is represented as FCI = TCI-WCI or Fixed Capital Investment = Total Capital Investment-Working Capital Investment. Total Capital Investment in $ terms refers to the overall amount of money that a company invests in a particular project, venture, or business initiative & Working Capital Investment in $ term refers to the amount of capital that a business invests in its day-to-day operational activities to ensure smooth and efficient functioning.
How to calculate Fixed Capital Investment?
The Fixed Capital Investment also known as Fixed Capital Expenditure (Fixed CAPEX), is a specific category of capital investment that refers to the allocation of funds for the acquisition, construction, or enhancement of long-term, non-current assets that are essential for a business's operations and do not change frequently is calculated using Fixed Capital Investment = Total Capital Investment-Working Capital Investment. To calculate Fixed Capital Investment, you need Total Capital Investment (TCI) & Working Capital Investment (WCI). With our tool, you need to enter the respective value for Total Capital Investment & Working Capital Investment and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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