What is hurdle rate? Should the company use the composite WACC as the hurdle rate for each of its projects? Please graphically illustrate the point for the company that has two divisions of equal size and provide explanations: low risk and high$-$risk divisions; has composite WACC of $10\%,$ low risk division WACC of $7\%,$ high risk division WACC of $13\%.$ Let's say it wants to evaluate two projects: project for low risk division that is expected to provide $9\%$ rate of return, and project for high risk division that is expected to provide $11\%$ rate of return.