Question
The hurdle rate is the minimum rate of return that a company expects to receive from any investment that they undertake. True False A buffer
The "hurdle rate" is the minimum rate of return that a company expects to receive from any investment that they undertake.
True
False
A "buffer margin" is the number of percentage points by which the cost of capital may exceed the expected rate of return for a project, where the company will still accept the project.
True
False
The "time value" of money implies that money today is worth less than the same amount in the future.
True
False
Comparing current returns with future returns, without accounting for the time value of money, will overstate the relative value of the future returns.
True
False
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