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Consider investment decision criteria, specifically the IRR or the rate used to determine NPV. Can firms have more than one hurdle rate, why or why not. Under what circumstances might it make sense for a firm to have multiple hurdle rates?Length: short paragraphRespond to two other students.Student 1Firms can have more than one hurdle rate for different projects. A riskier project will more than likely have a higher hurdle rate. Most companies use their WACC as the hurdle rate because with more riskier projects, risk is typically added into their WACC. They also can use the NPV to test if they should proceed with a project. If the NPV is positive, they will proceed. When using IRR, if the IRR is higher than the hurdle rate then they will proceed. Hurdle rates will typically encourage projects with a higher rate of return. Firms might typically have multiple hurdle rates when their assessment of risk varies. Student 2Hurdle rates are used by firms to measure the break-even of a project or future endeavor. Internal rate of return is a measure either higher or lower than the hurdle rate. If IRR is higher than the hurdle rate, than the project is most likely a good investment. The problem with comparing the IRR with the hurdle weight is it only takes in account the percentage, not the amount of cash received.