Generally, the hurdle rate is equal to the company'scosts of capital, which is a combination of thecost of equityand thecost of debt. Managers typically raise the hurdle rate for riskier projects or when the company is comparing multiple investment opportunities. Internal Rat...
Hurdle Rate vs. Internal Rate of Return (IRR) The hurdle rate andIRRare both key financial metrics used in investment and capital budgeting, but they serve different purposes and are used in different ways. The hurdle rate is essentially the minimum acceptable return on an investment. It is ...
Hurdle Rate vs. Internal Rate of Return It’s a common misconception but these two terms are not the same. Hurdle rate refers to the specific minimum acceptable return on an investment. The Internal Rate of Return (IRR), meanwhile, is the actual rate of return that’s earned by the inves...
The internal rate of return (IRR) is the A. Hurdle rate. B. Rate of interest for which the net present value is greater than 1.0. C. Rate of interest for which the net present value is equal to zero. D. Rate of return generated from the operational cash flows. 相关知识点: 试题来...
Before accepting and implementing a certain investment project, itsinternal rate of return (IRR)should be equal to or greater than the hurdle rate. Any potential investment must possess a return rate that is higher than the hurdle rate in order for it to be acceptable in the long run. ...
Opportunity cost of capital, hurdle rate and discounting rate are all same. It is that rate of return which can be earned from next best alternative investment opportunity with similar risk profile. The concept of hurdle rate is used widely used for valu
The growth rate of fresh apple consumption has reached 70% in the past 11 years in China. To gain a general picture of urban consumers' willingness to pay a premium for organic fruits across major regions of China, the research was conducted in nine cities distributed in different parts of ...