Question: What are three reasons that cash is worth more today than cash to be received in the future? Define the term return on investment. How is the return normally expressed? Give an example of a capital investment return. How does a company establish its minimum acceptable rate of return on investments? What criteria determine whether a project is acceptable under the net present value method? Does the net present value method provide a measure of the rate of return on capital investments? How do capital investments affect profitability? What is a postaudit? How is it useful in capital budgeting?