Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 16 November 1984
Length: 5 pages
Data source: Generalised experience
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Abstract
A large integrated oil company is debating whether to switch from a single hurdle rate to multiple hurdle rates for project analysis purposes. Raises questions on: (1) determination of the cost of equity; (2) the usefulness of multiple hurdle rates to adjust for project risk; (3) differences between a project's risk and its impact on overall corporate risk; and (4) the limitations of project analysis and capital budget systems.
Location:
Size:
USD6 billion sales
Other setting(s):
1975
Spanish language
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 16 November 1984
Length: 5 pages
Data source: Published sources
About
Abstract
A large integrated oil company is debating whether to switch from a single hurdle rate to multiple hurdle rates for project analysis purposes. Raises questions on: (1) determination of the cost of equity; (2) the usefulness of multiple hurdle rates to adjust for project risk; (3) differences between a project's risk and its impact on overall corporate risk; and (4) the limitations of project analysis and capital budget systems.
Settings
Location:
Size:
USD6 billion sales
Other setting(s):
1975
Related
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 16 November 1984
Length: 5 pages
Data source: Published sources