The hurdle rate used in IRR analysis should be:

Question

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The hurdle rate used in IRR analysis should be the discount rate used in NPV analysis. This is because IRR and NPV are both valuation methods used to determine the profitability of an investment, and the discount rate (or hurdle rate) reflects the cost of capital and the risk associated with the investment. Therefore, to make a fair comparison between different investment opportunities, the same hurdle rate should be used for both IRR and NPV analysis.

The Hurdle Rate Used in IRR Analysis Should Be