hurdle rate
Definition
Minimum return on investment necessary to cover all costs associated with a project. If the expected rate of return is below the hurdle rate, the project is abandoned or is modified to increase the return. It must be equal to the incremental cost of capital and is also called break-even yield.
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hurdle rate is in the Accounting & Auditing, Banking, Commerce & Finance, Decision Making, Problem Solving, & Strategy, Investing and Planning & Scheduling subjects.
hurdle rate appears in the definition of the following term: discounted cash-flow (DCF)
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