Fixed Capital vs Working Capital: Investing Pros and Cons

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Fixed Capital: Pros & Cons

PROS 1. Long-term returns 2. Asset appreciation 3. Tax benefits CONS 1. High upfront costs 2. Maintenance expenses 3. Limited liquidity

Working Capital: Pros & Cons

PROS 1. Quick returns 2. Flexibility 3. Less capital intensive CONS 1. Low returns 2. High risk 3. Vulnerability to economic cycles

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