The hurdle rate should be set so that it reflects the proper risk leve

The hurdle rate should be set so that it reflects the proper risk level for the project. If we have to choose between two projects with similar risk and therefore similar hurdle rates, we would select the project that ________.

A) has a higher internal rate of return
B) has a lower internal rate of return
C) has a hurdle rate that is consistent with the payback period method
D) has a hurdle rate that is consistent with the discounted payback period model

ANSWER

Answer: A