Most firms will compute the "hurdle rate" that they use to assess investment projects as follows: (i) use a risk-return model, like the CAPM, to determine the "technical" discount rate required given the risk of the average project; (ii) add a "profit margin" (say 2%) above this technical discount rate this 2% buffer is supposed to be a margin of error and an aspiration to earn substantial returns for shareholders, rather than just earn the minimum. Discuss (briefly) what you think about this practice. Be clear and concise and to the point.