Explain your Thoughts A capital investment can be described

Explain your Thoughts

A capital investment can be described as furthering companies long-term business goals by acquiring physical assets. An example of capital investment is when Amazon entered the grocery business and bought Whole Foods for $13 billion. Amazon bought this supermarket chain because it was wanting to expand into the grocery store industry. Amazon acquired Whole Foods as it was losing market share and revenue but is now turning the company around to compete with Walmart. When looking at the trends of stock market prices and market share it is evident that the acquisition of Whole Foods has shown positive performance, Amazon now has more free cash flow and has more stores which expanded the company’s assets.