Discover a wealth of knowledge at Westonci.ca, where experts provide answers to your most pressing questions. Discover comprehensive solutions to your questions from a wide network of experts on our user-friendly platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.
Sagot :
In a net-present-value analysis, whether cash flows are increasing or decreasing, the discount rate is often called the hurdle rate. Thus, the correct option is B). Hurdle rate
What is the Hurdle rate?
A hurdle rate refers to the minimum rate of return on a project or investment that is required by a manager or investor. It is also referred to as a break-even yield.
Hurdle rate is very important in business world. If an expected rate of return is above the hurdle rate, then the investment is considered sound, while on the other hand when the rate of return is below the hurdle rate, the investor may choose to avoid the investment.
Basically, hurdle rate determines the risk associated with the future projects and investments.
Learn more about hurdle rate here:-
https://brainly.com/question/25656613
#SPJ4
Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.