The term hurdle rate is often used in the context of project evaluation and is sometimes used to refer to the risk adjusted discount ratei e , the required rate of return on a project with a given level of risk The risk adjusted discount rate refers to the cost of capital or opportunity cost of raising money to finance an in vestment, and hurdle rates are generally higher than the cost of capital Why might a firm use hurdle rates that exceed its cost of capital

Question: The term hurdle rate is often used in the context of project evaluation and is sometimes used to refer to the risk-adjusted discount ratei.e., the

The term hurdle rate is often used in the context of project evaluation and is sometimes used to refer to the risk-adjusted discount rate—i.e., the required rate of return on a project with a given level of risk. The risk adjusted refers to the or of raising money to finance an in-vestment, and hurdle rates are generally higher than the Why might a firm use hurdle rates that exceed its

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