Indicate whether each of the following statements is true or false.
1. The further into the future a cash receipt is expected to occur, the higher is its present value.
2. The return on investment measures the compensation a company expects to receive from investing in capital assets.
3. Most companies use their cost of capital to estimate the minimum return on investment required from capital investments.
4. When a company invests in capital assets, it sacrifices present dollars for the opportunity to receive future dollars.
5. The required rate of return on a capital investment is also referred to as the hurdle rate or discount rate.

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The Answer of Indicate whether each of the following statements is true or false.
1. The further into the future a cash receipt is expected to occur, the higher is its present value.
2. The return on investment measures the compensation a company expects to receive from investing in capital assets.
3. Most companies use their cost of capital to estimate the minimum return on investment required from capital investments.
4. When a company invests in capital assets, it sacrifices present dollars for the opportunity to receive future dollars.
5. The required rate of return on a capital investment is also referred to as the hurdle rate or discount rate.

Indicate Whether Each of the Following Statements Is True or False