A capital investment decision is essentially a decision to exchange current cash outflows for future cash inflows.

Name: A capital investment decision is essentially a decision to exchange current cash outflows for future cash inflows.
Brand: Quizplus
Rating: 4.8 (56 reviews)

Question

Quizplus · Accepted Answer

This statement is true. A capital investment decision involves investing money now in the expectation of receiving a return in the future, which is essentially exchanging current cash outflows for future cash inflows.

A Capital Investment Decision Is Essentially a Decision to Exchange