Difference between revisions of "Hurdle rate"

From CNM Wiki
Jump to: navigation, search
 
Line 7: Line 7:
 
According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]],
 
According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]],
 
:[[Hurdle rate]]. See required rate of return (RRR).
 
:[[Hurdle rate]]. See required rate of return (RRR).
 +
According to [[Managerial Accounting by Braun, Tietz (5th edition)]],
 +
:[[Hurdle rate]]. Management's minimum desired rate of return on an investment; also called the discount rate and required rate of return.
  
 
==Related concepts==
 
==Related concepts==

Latest revision as of 11:07, 15 July 2020

Hurdle rate is the project cost of capital, or discount rate. It is the rate used to discount future cash flows in the net present value method or to compare with the internal rate of return.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Hurdle rate. The project cost of capital, or discount rate. It is the rate used to discount future cash flows in the net present value method or to compare with the internal rate of return.

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Hurdle rate. See required rate of return (RRR).

According to Managerial Accounting by Braun, Tietz (5th edition),

Hurdle rate. Management's minimum desired rate of return on an investment; also called the discount rate and required rate of return.

Related concepts

Related lectures