The required rate of return of a project is ____ the MNC's cost of capital.

Question

Quizplus · Accepted Answer

The required rate of return of a specific project may be greater than, less than or the same as the MNC's cost of capital depending on the risks and potential returns associated with that project. For example, if the project has higher risks than the MNC's overall operations, the required rate of return may be greater than the cost of capital. Conversely, if the project has lower risks and provides higher potential returns, the required rate of return may be less than the cost of capital. Therefore, the choice depends on the specific project under consideration.

The Required Rate of Return of a Project Is ____