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In a net-present-value analysis, the discount rate is often called the:_____.
a. minimal value.
b. hurdle rate.
c. payback rate.


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

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