It is possible for a firm to generate an after-tax profit on an investment but to still consider the project unacceptable due to insufficient return.

Question

Quizplus · Accepted Answer

A firm may have a minimum required rate of return or hurdle rate that any project must meet or exceed to be considered acceptable. Even if a project generates an after-tax profit, if the return is lower than the minimum required rate, the project may not be worth pursuing.

It Is Possible for a Firm to Generate an After-Tax