Q490
In capital budgeting, two projects who have cost of capital as 12% is classified as
A.
hurdle rate
AnswerB.
capital rate
C.
return rate
D.
budgeting rate
Answer: Option A
Solution
Answer: Option A
Solution:
In capital budgeting, two projects who have cost of capital as 12% is classified as hurdle rate. A hurdle rate is the minimum rate of return on a project or investment required by a manager or investor.