required rate of return
Definition
Minimum acceptable rate of return on an investment proposal that is comparable with the rate of return obtainable effortlessly and at a low level of risk in the financial markets (such as on a time deposit in a bank).
required rate of return is in the Accounting & Auditing, Banking, Commerce & Finance, Decision Making, Problem Solving, & Strategy and Investing subjects.
required rate of return appears in the definitions of the following terms: residual value, discount rate and net present value (NPV)
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