The minimum expected rate of return of the management from any project is referred to as the:

Question

Quizplus · Accepted Answer

The minimum expected rate of return of the management from any project is referred to as the hurdle rate. It is the minimum rate of return that a project must generate to be accepted by management. Therefore, choice B, the hurdle rate, is the correct answer. The internal rate of return (choice A) is the discount rate that makes the net present value of all cash flows equal to zero. Choice C, a number greater than 1, and choice D, a number less than zero, do not appropriately answer the question.

The Minimum Expected Rate of Return of the Management from Any