The final selection is usually based on the accept-reject decision. The __________ may be based on the cost of capital, the opportunity cost, and other conceptual standards.

Question

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The accept-reject decision is usually based on the hurdle rate, which is the minimum rate of return required by an investor or a company on an investment project to make it worthwhile. The hurdle rate is often based on the cost of capital, the opportunity cost, and other conceptual standards, and it represents the minimum acceptable rate of return that an investment project should generate to be considered viable. Therefore, the hurdle rate is a critical component of investment analysis and is used to determine the profitability and feasibility of investment projects.

The Final Selection Is Usually Based on the Accept-Reject Decision