Asked by Redwanul Haque on Jun 14, 2024
Verified
A hurdle rate is the rate of return set by applying ideal standards.
Hurdle Rate
The minimum rate of return on an investment that is required by a manager or investor to proceed with the investment.
- Understand the methodologies and importance of capital budgeting techniques in investment decisions.
Verified Answer
ZK
Zybrea KnightJun 14, 2024
Final Answer :
False
Explanation :
A hurdle rate is the minimum required rate of return that must be achieved in order to justify an investment. It is generally set based on the cost of capital or the expected return on alternative investments with similar risk profiles. There is no one "ideal" standard for setting a hurdle rate.
Learning Objectives
- Understand the methodologies and importance of capital budgeting techniques in investment decisions.
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