The projected rate of return on a particular project is equal to the hurdle rate.Which statement is true?

Question

Quizplus · Accepted Answer

If the projected rate of return on a project is equal to the hurdle rate, it means that the project is expected to generate a return equal to the minimum required rate of return. Therefore, the project should be accepted as it meets the minimum requirement. Options A and B are incorrect as they suggest that the project is not viable. Option C is also incorrect as the hurdle rate is already being used as the discount rate, which means that it cannot be lowered further.

The Projected Rate of Return on a Particular Project Is