Which of the following statement is incorrect? a. the further into the future a

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.

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