Q » Explain hurdle rate.

Steven

06 Dec, 2025

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A » In finance, the hurdle rate is the minimum acceptable rate of return on an investment. It represents the threshold at which a project or investment starts to be considered worthwhile by investors. Typically, the hurdle rate is determined based on the cost of capital, perceived risk, and opportunity cost. Projects with expected returns above this rate are pursued, while those below are typically rejected.

Michael

06 Dec, 2025

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A »The hurdle rate is the minimum return on investment (ROI) that a project or investment must generate to be considered viable. It's a benchmark used to evaluate investment opportunities, ensuring they meet or exceed the required return to justify the risk and cost of capital. It helps investors and companies make informed decisions.

David

06 Dec, 2025

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