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What are some obstacles to discerning a precise hurdle rate at Big Red Trucking, or in your business or industry? In what ways might you Red Trucking, or in your business or industry? In what ways might you adjust your hurdle-rate calculations to compensate for "real-world" imprecision? What kinds of bias to the decision might those adjustments cause? Can you think of an instance when a capital project projection might satisfy the hurdle-rate requirements, but the project would be rejected anyway? What other criteria impact the decision?

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  • Category:- Accounting Basics
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