The hurdle rate for capital budgeting decisions is

Question

Quizplus · Accepted Answer

The hurdle rate for capital budgeting decisions is the minimum rate of return that a company requires before investing in any project. This rate is typically equal to the cost of capital, which is the average cost of financing a company's assets. Therefore, the answer is A, the cost of capital. The other options, such as the cost of debt, equity, or risk-free rate, may be relevant in specific scenarios but are not the overall hurdle rate for capital budgeting decisions.

The Hurdle Rate for Capital Budgeting Decisions Is