Required Rate of Return

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Definitions
Hurdle Rate
Hurdle Rate Capital Budgeting Cost of Capital Weighted Average Cost of Capital Risk Assessment Required Rate of Return Investment Analysis
The hurdle rate is the minimum rate of return on an investment or project that a manager or company seeks to achieve before it generally discusses or explores the project. This rate is also known as the required rate of return or the benchmark rate.
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Definitions
Profitability Index (PI)
Profitability Index Discounted Cash Flow (DCF) Project Ranking Cash Flow Patterns Required Rate of Return
A financial metric used in discounted cash flow analysis to rank potential projects based on their profitability.
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Definitions
Rate of Return Pricing
Rate of Return Pricing Required Rate of Return Return on Capital Employed Pricing Strategy Financial Objectives Profitability
Rate of return pricing involves setting prices for a range of products so that they achieve a predetermined rate of return or return on capital employed (ROCE). This pricing strategy aligns pricing decisions with the financial objectives of earning a specific return, ensuring that the company meets its profitability targets.
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Definitions
Required Rate of Return (RRR)
Required Rate of Return RRR Rate of Return Investment Appraisal Internal Rate of Return Discounted Cash Flow Return on Capital Employed Accounting Rate of Return
The required rate of return (RRR) represents the minimum return an organization deems necessary to justify an investment, expressed as a percentage.
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