Cost of capital is commonly used interchangeably with all of the following terms EXCEPT
A) the firm's required rate of return.
B) the hurdle rate for new investments.
C) the internal rate of return for new investments.
D) the firm's opportunity cost of funds.

Question

Quizplus · Accepted Answer

While cost of capital, required rate of return, hurdle rate, and opportunity cost of funds all reflect the minimum return a firm requires on its investments, the internal rate of return specifically refers to the expected rate of return for a specific investment project.

Cost of Capital Is Commonly Used Interchangeably with All of the Following