What Is the Minimum Acceptable Rate of Return on a Project

question 11

Multiple Choice

What is the minimum acceptable rate of return on a project that a company will accept?

• A)running rate
• B)recount rate
• C)hurdle rate
• D)mortgage rate
• E)None of the above

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in irrational or dysfunctional decision-making outcomes.

Creative Solution

An innovative or imaginative answer to a problem that is not obvious and requires thinking outside the conventional framework.

Investment Option

A choice available for allocating resources with the expectation of generating a return.

Task Force

A temporary group created to focus on a specific project or solve a particular problem.