1. Why might hurdle rate for a project within a firm vary considerably from its overall hurdle rate?
Project may be a new venture with an unproven outcome.
Project may be in a different geographic region or country.
Project may be in a business unit whose economic performance is above or below average.
All of the above.
2. Which of the following would not be a source of project risk?
Technology risk
Legal risk
Commodity risk
Market risk