Long Horizon resorts has seen a significant downturn in revenues in the last three years. The facilities are outdated, and management feels that is part of the cause of the decline in membership. There are four proposals on the table: (1) lay off staff (2) pour more money into marketing (3) spend money on deferred maintenance (4) build a new clubhouse with a pool. Which of these would be considered a capital project?

Box 1: Select the best answer