Which of the following statements is incorrect? The further into the future a ca

Question

Which of the following statements is incorrect? The further into the future a cash receipt is expected to occur, the lower is its present value. The return on investment measures the compensation a company expects to receive from investing in capital assets. O Most companies use their cost of capital to estimate the minimum return on investment required from capital investments. O When a company invests in capital assets, it sacrifices future dollars for the opportunity to receive present dollars.

Explanation / Answer

The further into the future cash receipt is expected to occur,the lower its present value

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