Without knowing its required rate of return (ie, hurdle rate) for use in the eva

Question

Without knowing its required rate of return (ie, hurdle rate) for use in the evaluation of capital investment projects, a company will be prohibited from calculating a project's:

     Payback      Book Rate          Net          Internal

a. Yes                 Yes                  Yes             Yes

b. No                 No                      Yes           Yes

c.No                   Yes                      No           Yes

d.No                   No                       Yes          No

e.Yes                  No                       No         Yes

Explanation / Answer

The calculation of net present value requires required rate of return (ie, hurdle rate) Payback Book rate Net present value Internal rate of return No No Yes No Option D is correct

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