A rate of return required by management to accept a project is called ________.

A) hurdle rate
B) net present rate
C) rate of inflation
D) payoff rate

Question

A rate of return required by management to accept a project is called ________.A) hurdle rateB) net present rateC) rate of inflationD) payoff rate

Steven Haberkorn · Accepted Answer

Final Answer : A, Explanation :  The rate of return required by management to accept a project is commonly referred to as the hurdle rate. It is the minimum rate of return that must be achieved in order for the project to be considered profitable enough to undertake. The other options, net present rate, rate of inflation, and payoff rate do not accurately describe the rate of return required by management in this context.

A rate of return required by management to accept a project is called ________.

A) hurdle rate
B) net present rate
C) rate of inflation
D) payoff rate

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