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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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