riott h3(1).xlsx # 3 3 E D 80 F3 C $ 4 R P2_marriott h .pdf F 1/10 Q F4 % 5 V NO LI DS T Harvard Business School Cohrs recognized that the divisional hurdle rates at Marriott would have a significant impact on the firm's financial and operating strategies. As a rule of thumb, increasing the hurdle rate by 1% (for example, from 12% to 12.12%), decreased the present value of project inflows by 1%. Because costs. remained roughly fixed, these changes in the value of inflows translated into changes in the net present value of projects. Figure A shows the substantial impact of hurdle rates on the anticipated net present value of projects. If hurdle rates were to increase, Marriott's growth would be reduced as once profitable projects no longer met the hurdle rates. Conversely, if hurdle rates decreased, Marriott's growth w