Hurdle Rate & Capital Budgeting | Jeremy is a start-up entrepreneur who had a business for 3 years now. He has plans of going from an SME category to large corporation as business prospects and cash flows are generally favorable. Cost of doing business falls in the 15% - 20% range. Jeremy is an avid fan of just looking into payback period as his measuring tool for business success + the ubiquitous profit margin percentage. Is he justified in advising his finance and accounting team to dip their hands in net present value and internal rate of return analysis moving forward in the next accounting periods? Ensure your discussion touches on capital budgeting and hurdle rate concepts.