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    Question

    Minimum return expected by investment in a project is

    called-
    A Opportunity cost Correct Answer Incorrect Answer
    B Hurdle Rate Correct Answer Incorrect Answer
    C Risk free rate Correct Answer Incorrect Answer
    D Budgeted rate Correct Answer Incorrect Answer
    E Minimum rate Correct Answer Incorrect Answer

    Solution

    In capital budgeting, hurdle rate is the minimum rate that a company expects to earn when investing in a project. Hence the hurdle rate is also referred to as the company's required rate of return or target rate. In order for a project to be accepted, its internal rate of return must equal or exceed the hurdle rate.

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