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Indicate Whether Each of the Following Statements Is True or False

Question 132

Short Answer

Indicate whether each of the following statements is true or false.
1. A capital investment is a purchase of a long-term operational asset.
2. Investments in capital assets normally are recovered by selling the assets.
3. The profitability of a business is greatly influenced by the quality of its capital investment decisions.
4. A capital investment decision exchanges current cash inflows for future cash outflows.
5. The time value of money concept is often used in making capital investment decisions.

Correct Answer:

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1. True
2....

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