The Hurdle Rate Should Be Set So That It Reflects

question 97

Multiple Choice

The hurdle rate should be set so that it reflects the proper risk level for the project.If we have to choose between two projects with similar risk and therefore similar hurdle rates,we would select the project that ________.

• A)has a higher internal rate of return
• B)has a lower internal rate of return
• C)has a hurdle rate that is consistent with the payback period method
• D)has a hurdle rate that is consistent with the discounted payback period model

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Definitions:

Charismatic

Possessing a charm and appeal that inspires devotion or enthusiasm in others.

Transformational Leadership

A leadership approach that causes change in individuals and social systems, emphasizing vision, inspiration, and intellectual stimulation.

Optimism

A mental attitude characterized by hope and confidence in success and a positive future.

Intellectual Stimulation

A leadership practice that encourages followers to think creatively and challenge existing assumptions.