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Fri Jan 10

High hurdle rates are holding back businesses, but perhaps they should be

Written by Salvatore Ferraro, PhD candidate, RMIT University

Australian businesses are demanding rates of return far higher than their cost of capital, but that doesn't make those hurdles wrong.Shutterstock

Calls by the head of the Australian Competition and Consumer Commission Rod Sims for Australian businesses to cut the hurdle rates of return they expect on new investments should be taken with a grain of...

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