The required rate of return reflects the costs of funds needed to finance a project.

Name: The required rate of return reflects the costs of funds needed to finance a project.
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The required rate of return is the minimum rate of return, or cost of capital, that a project must generate in order to be considered viable. It reflects the costs of funds needed to finance the project, including factors such as the riskiness of the investment, inflation, and the cost of equity and debt financing.

The Required Rate of Return Reflects the Costs of Funds