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 hurdle rate.
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'required rate of return' appears in the definitions of these other terms on BusinessDictionary.com:
net present value (NPV), residual value, discount rate
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