• CAPEX vs OPEX — feasibility studies

Capital Expense or Capital Expenditures — capital expenses, one-time costs incurred during the construction phase and initial commissioning of the facility. The indicator is used in comparison with the operational, operational costs of Opex, which the owner bears throughout the life of the facility.

Operating Expense or Operating Expenditures — operating costs, fixed costs that the owner incurs throughout the life of the facility. The indicator is used in comparison with Capex capital expenditures that occur during the construction phase and initial commissioning of the facility.

In total, Capex capital expenditures and Opex operating costs add up to the total (or total) TCO cost of ownership.

Why consider opex and capex?

Most companies seek to reduce capex, thereby increasing opex costs, without realizing it. The correct calculation of capex and opex will help optimize the budget most effectively.