hurdle rate
DefinitionThe 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.
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hurdle rate is ...
... part of the Strategies and Investor Relations subjects.
... part of the Strategies and Investor Relations subjects.
Related Terms
security market line
hurdle rate appears in the definitions of these other terms on BusinessDictionary.com
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