hurdle rate

Definition
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.




hurdle rate is ...
... part of the
Strategies and Investor Relations subjects.


Related Terms

Net Present Value -  More
expected return -  More
cutoff point -
security market line


hurdle rate appears in the definitions of these other terms on BusinessDictionary.com

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