Which of the Statements Below Is TRUE

question 34

Multiple Choice

Which of the statements below is TRUE?

• A)The hurdle rate is the cost of debt needed to fund a project.
• B)If the IRR exceeds a project's hurdle rate,the project should be rejected.
• C)If the IRR clears the hurdle rate,the project is rejected.
• D)The hurdle rate should be set so that it reflects the proper risk level for the project.