When using internal rate of return, the cost of capital acts as a a. Capital cost...

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When using internal rate of return, the cost of capital acts as a a. Capital cost...

When using internal rate of return, the cost of capital acts as a

a. Capital cost rate

b. Hurdle rate

c. Star rate

d. Super rate

Select one:

a. Super rate

b. Hurdle rate

c. Star rate

d. Capital cost rate

business accounting

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Answer 1

Answer #1

When using Internal rate of return(IRR) the cost of capital (WACC) act as (b) Hurdle rate

Hurdle rate is the minimum rate that a company expects to earn when investing in a project. Hence the hurdle rate is also referred to as the company's required rate of return or target rate.

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Answer 2

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When using internal rate of return, the cost of capital acts as a a. Capital cost...

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