3 There is less evidence of this issue in Australia, but a recent survey of CFOs by Deloitte hints at the  3  4  For example, see Sharpe S and Gustavo Suarez (2013), “Do CFOs Think Investment is Sensitive to Interest Rates?”, FEDS Notes, 26 September. Available at <http://www.federalreserve.gov/econresdata/notes/fedsnotes/2013/do-cfos-think-investment-is-sensitive-to-interest-rates-20130926.html>. BIS central bankers’ speeches  same conclusion.
The survey results suggest that hurdle rates of return on new investment are typically above 10 per cent and sometimes considerably so (Graph 11). The results also suggest that the average margin between the hurdle rate of return and the weighted-average cost of capital is about 3 percentage points.