For capital budgeting process management would select high hurdle rate of return for certain projects because management?

Question

a. wants to use equity funding exclusively.
b. Believes too many proposals are being rejected.
c. Believes bank loans are riskier than capital investments.
d. Wants to factor risk into its consideration of projects.

RAMAN NAMPOOTHIRI · Answer

Agree with answer given by Mr. Venkata Raman and Vinod Jetely

Vinod Jetley · Answer

d. Wants to factor risk into its consideration of projects.

Ibrahim Hussein Mayaleh · Answer

Thanks for the invitation, but I really don't know. I leave it to the experts.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN · Answer

Answer option (d) >>>>>>>>> Wants to factor risk into its consideration of projects.

'Hurdle Rate' :The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, the riskier the project, the higher the hurdle rate

Divyesh Patel · Answer

<p>Option D</p>

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For capital budgeting process management would select high hurdle rate of return for certain projects because management?

'Hurdle Rate' :The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, the riskier the project, the higher the hurdle rate

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