The Hurdle Rate Rule Uses ________ Than ________ to Compute

question 57

Multiple Choice

The hurdle rate rule uses ________ than ________ to compute the NPV,but then applies the regular NPV rule.

• A) a lower discount rate; the cost of capital
• B) a higher discount rate; the required rate of return
• C) a lower discount rate; the required rate of return
• D) a higher discount rate, the cost of capital

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Definitions:

Id

A component of the psyche in psychoanalytic theory that is responsible for instinctual drives and demands immediate satisfaction.

Libido

A term used to describe sexual drive or desire, often discussed in psychoanalytic theories.

Heinz Kohut

A psychoanalyst known for his development of self psychology, which emphasizes the importance of empathetic relationships in the formation of the self.

Primary Selfobject

A concept in psychology representing an individual or object in an environment that provides essential psychological functions to the self.