Invested Capital

The company needed capital to buy stuff...to eventually produce more capital or cash as it grew...up.

Invested capital is just the cash invested into a project designed to produce more capital in the future.

See: Discounted Cash Flow. See: WACC. See: A-Round. See: B-Round.

Think: our proverbial tractor smelting plant that costs $100 million...and its high-techness will allow Tractors-R-Us to produce an excellent tractor for $22,000 instead of $28,000.