Describe a capital expenditure of the company. Why is this item a capital expenditure?

Capital budgeting techniques | FINC410 Corporate Finance | Colorado Technical University

A capital expenditure is a purchase made by a company that adds to its long-term value or productivity. Examples of capital expenditures include buying new equipment, constructing buildings, and purchasing property.
This item is considered a capital expenditure because it has the potential to provide long-term value for the company, as opposed to short-term gains from regular operating expenses. The resulting asset may also be used over multiple accounting periods and can generate income by adding to the company’s productive capacity.