Which of the following is a legitimate reason for firms to use a hurdle rate rather than an estimated WACC to evaluate projects?

Question 9 options:

	A) To more closely represent true opportunity costs for a firm that has to reject positive-NPV projects due to financial constraints.
	b) To provide a safety margin in case of estimation error in the WACC.
	C) Both of the above reasons are valid.
	D) Firms only use a hurdle rate different from the WACC out of ignorance of financial theory.
	E) Firms never use a "hurdle rate."