Question
A company's average project has a CV of 0.5 - 1.0 and the current project under consideration has a CV of 1.3. What hurdle rate
A company's average project has a CV of 0.5 - 1.0 and the current project under consideration has a CV of 1.3. What hurdle rate should be used in this project's NPV analysis?
A hurdle rate lower than the corporate cost of capital | ||
A hurdle rate higher than the corporate cost of capital | ||
A hurdle rate equal to the project's IRR | ||
A hurdle rate equal to the corporate cost of capital |
A company with a high standard deviation related to its ability to project operating profit will have...
Low business risk | ||
High business risk | ||
No business risk | ||
Average business risk |
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