Which of the following statement 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.