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hurdle rate

The required rate of return in a discounted cash flow analysis, above which an investment makes sense and below which it does not. Often, this is based on the firm's cost of capital or weighted average cost of capital, plus or minus a risk premium to reflect the project's specific risk characteristics. also called required rate of return.

Related information about hurdle rate:
  1. Hurdle Rate Definition | Investopedia
    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, the riskier the project, the higher the ...
     
  2. Minimum acceptable rate of return - Wikipedia, the free encyclopedia
    The hurdle rate is usually determined by evaluating existing opportunities in operations expansion, rate of return for investments, and other factors deemed ...
     
  3. What is hurdle rate? definition and meaning - InvestorWords.com
    Definition of hurdle rate: The required rate of return in a discounted cash flow analysis, above which an investment makes sense and below which it does not.
     
  4. The Hurdle Rate
    The hurdle rate is the minimum acceptable rate of return on a capital investment project. The term is usually associated with one particular method of analysis ...
     
  5. Hurdle Rate
    Hurdle rate. The minimum return necessary for a fund manager to start collecting incentive fees. The hurdle is usually tied to a benchmark rate such as Libor or ...
     
  6. Hurdle Rate - Financial Dictionary - The Free Dictionary
    The required return in capital budgeting. For example, if a project has an expected rate of return higher than the hurdle rate, the project may be accepted. Also ...
     
  7. What is hurdle rate? | AccountingCoach.com Q&A
    In capital budgeting, hurdle rate is the minimum rate that a company expects to earn when investing in a project. Hence the hurdle rate is also referred to as.
     
  8. What is hurdle rate? definition and meaning - BusinessDictionary.com
    Definition of hurdle rate: Minimum return on investment necessary to cover all costs associated with a project. If the expected rate of return is below the hurdle ...