Question

When a company compares a proposed project to a performance benchmark, which of the following benchmarks...

When a company compares a proposed project to a performance benchmark, which of the following benchmarks might the company use?

Group of answer choices

Minimum required return on investment

Neither of these answers is correct

Minimum number of years in which the project must return the original investment

Both of these answers are correct

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Homework Answers

Answer #1

When a co compares project then it should both : -

  • Minimum Required Rate of Return i..e Interenal Rate of Return
  • Minimum no of years in the which the project must return the Original Investment.

Both the performance are important because Minimun Required Rate of Return help you decide how much a project should earn minimum to be feasible. Also it is important to know, how much years will be taken by the project to recover the intial Investment.

Option D is correct.

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