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:

Bank Failures

Bank failures occur when a bank is unable to meet its obligations to depositors or creditors and is placed under the control of a regulatory agency.

Risky Assets

Assets that carry a significant possibility of loss along with the potential for higher rewards.

Money Market Mutual Funds

Investment funds that pool investors' money to purchase short-term, high-quality debt securities, offering liquidity and earning interest.

Check-Writing Privileges

The ability granted to an individual to write checks against an account, such as a money market account, that typically doesn't offer this feature.