Which of the following statement is incorrect? a. the further into the future a
ID: 2477944 • Letter: W
Question
Which of the following statement is incorrect?
a. the further into the future a cash receipt is expected to occur, the lower is its present value.
b. the return on investment measures the compensation a company expects to receive from investing in capital assets.
c. most companies use their cost of capital to estimate the minimum return on investment required from capital investments.
d. when a company invests in capital assets, it sacrifieces future dollors for the opportunity to receive present dollars.
Explanation / Answer
when a company invests in capital assets, it sacrifieces future dollors for the opportunity to receive present dollars.
this statement is incorrect
therefore, option D.