What was the intended IRR threshold for the module edge data center project?

• A. 8%
• B. 11%
• C. 15%
• D. 20%

Answer: (C)

The intended internal rate of return (IRR) threshold for the module edge data center project was set at 15%. This figure is typically established by the project stakeholders based on the expected profitability and risk profile of the investment. A 15% IRR indicates that the project is anticipated to generate returns that exceed many conventional investment benchmarks, reflecting a balance of aggressive growth potential and acceptable risk levels for investors. Setting the threshold at this level would signal a strong commitment to achieving substantial financial returns amid competitive market conditions. It reflects an understanding of the technological landscape and the financial expectations necessary to attract and satisfy investors. A higher IRR threshold like 15% suggests a project must demonstrate solid cash flow generation capability and justify the capital invested.