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adjusts its hurdle rate (i.e., cost of capital) upward to compensate for this fact.
adjusts its hurdle rate (i.e., cost of capital) downward to compensate for this fact.
does not adjust its hurdle rate up or down regardless of this fact.
raises its prices to compensate for this fact.
My answer is option (C) does not adjust its hurdle rate up or down
>>>>>> does not adjust its hurdle rate up or down regardless of this fact.
>>>>>>>>>>>>>> does not adjust its hurdle rate up or down regardless of this fact.
does not adjust its hurdle rate up or down regardless of this fact
<<>>
It must be answer C: does not adjust its hurdle rate up or down regardless of this fact.
But also evaluate the Projects to see where it goes wrong.
Right answer option3 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
reference for answer: http://web.utk.edu/~jwachowi/mcquiz/mc15.html
Correct answer is does not adjust its hurdle rate up or down regardless of this fact.
Can understand its way of functioning and can reposition its strategies further on what to do and correcting areas that had the undesired shortcomings
I'll go with option3, firm should not accept project whose IRR is less than their cost of capital.
