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Case
| HBS Case Collection
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2001
(Revised from original 1998 version)
Concordia Electronic Systems Test
by
Thomas R. Piper
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Abstract
The management of an electronics company must decide whether to use a single hurdle rate for all projects or to move to a system of different hurdle rates for each of its two divisions. The divisions differ substantially in terms of risk and seem to have substantially different costs of capital.