Which of the Following Statements Is Incorrect

question 155

Multiple Choice

Which of the following statements is incorrect?

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

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Definitions:

Ground Tissue

The tissue in plants that makes up the majority of a plant's body, filling the spaces between the vascular and dermal tissue, and involved in photosynthesis, storage, and support.

Pith

The soft, spongy central cylinder of plant stems, providing structural support and storage of nutrients.

Photosynthetic Cells

Cells that contain chlorophyll and can convert carbon dioxide and water into glucose and oxygen, using sunlight.

Mineral Ions

Charged particles from minerals that plants absorb from the soil, which are crucial for their growth and development.