Question 10 (2 points)

Which of the following statements is/are TRUE about the hurdle rate of return?

I. It is the minimum return that a project should make to be deemed acceptable

II. It is the historical rate of return on divisional investments

III. It is a required return from the providers of funds perspective

IV. It is the rate at which a project breaks even and investors are correctly compensated for their risk

Question 10 options:

III only

I only

I, III, and IV

IV only