Question
As a manager evaluating capital investment projects, what hurdle rate of return is appropriate to use when calculating NPV and under which circumstances? That is,
As a manager evaluating capital investment projects, what hurdle rate of return is appropriate to use when calculating NPV and under which circumstances? That is, we have discussed the WACC and you know that reflects the average cost of raising funds from suppliers of capital. So what rate should a manager use in evaluating a capital investment project for the firm and why?
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Contemporary Financial Management Fundamentals
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
1st Edition
0324015771, 9780324015775
