The Hurdle Rate That Is Used in a Net-Present-Value Analysis

question 99

Multiple Choice

The hurdle rate that is used in a net-present-value analysis is the same as the firm's:

• A) discount rate.
• B) internal rate of return.
• C) minimum desired rate of return.
• D) objective rate of return.
• E) discount rate and minimum desired rate of return.

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Definitions:

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

Unprecedented Way

A manner or approach that is completely new and has no known precedents.

Years

Units of time consisting of 365 or 366 days, used to measure longer periods like decades and centuries in the Gregorian calendar.

Anti-globalization Movement

A social movement critical of economic globalization, arguing it leads to exploitation, environmental degradation, and a loss of national sovereignty.