The Appropriate Hurdle Rate for Comparison with the IRR Is

question 15

Multiple Choice

The appropriate hurdle rate for comparison with the IRR is:

• A)that which makes the sum of the discounted future cash flows and initial investment of the project equal to the undiscounted value of the tracking portfolio of the future cash flows.
• B)that which makes the sum of the undiscounted future cash flows and initial investment of the project equal to the selling price of the tracking portfolio of the future cash flows.
• C)that which makes the sum of the discounted future cash flows and initial investment of the project equal to the selling price of the tracking portfolio of the future cash flows.
• D)that which makes the sum of the discounted future cash flows of the project equal to the undiscounted value of the tracking portfolio of the future cash flows.

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