Indicate Whether Each of the Following Statements Is True or False

question 54

Short Answer

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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Definitions:

Motivation

The psychological process that stimulates and directs goal-oriented behaviors, stemming from desires, needs, or rewards.

Orbitofrontal Cortex

The orbitofrontal cortex is a region of the brain involved in the cognitive process of decision-making, processing of rewards and punishments, and emotion regulation.

Amygdala

A structure within the brain's temporal lobe associated with experiencing emotions, such as fear and pleasure, and forming emotional memories.

Gustatory Information

Data or sensory input related to the sense of taste.