The reason that business invest in capital, such as technology and new equipment is because buying these long-term assets such as equipment that will help the company run more efficiently or grow faster.
In finance, this investment refers to the expenditure of money that is used to fund a company's long-term growth.
Often times, the capital investment means the company's acquisition of permanent fixed assets such as real estate and equipment.
Some examples of the fixed assets financed by the capital investment includes the technology and new equipment as mentioned in the question.
In conclusion, the reason that business invest in capital, such as technology and new equipment is because buying these long-term assets such as equipment that will help the company run more efficiently or grow faster.
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