Hurdle rate - Revision history

imported>Doug Williamson: Update.

2022-04-25T18:27:09Z

Update.

← Older revision		Revision as of 18:27, 25 April 2022
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	A hurdle rate is an organisation's rate of return used for determining the viability of a proposed investment or other project.		A hurdle rate is an organisation's minimum rate of return used for determining the viability of a proposed investment or other project.

imported>Doug Williamson: Expand definition.

2021-02-07T12:48:40Z

Expand definition.

← Older revision		Revision as of 12:48, 7 February 2021
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	Hurdle rates are usually set with reference to the organisation's weighted average cost of capital.		Hurdle rates are usually set with reference to the organisation's weighted average cost of capital.

	~~They~~ may be adjusted for different classes of project, with different levels of risk.		This will depend on a number of factors, including currency and the risk free rate of return in the relevant currency.


			Hurdle rates may be adjusted for different classes of project, with different levels of risk.

	Riskier projects, or classes of project, would be allocated a higher hurdle rate.		Riskier projects, or classes of project, would be allocated a higher hurdle rate.
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	* [[Net present value]]		* [[Net present value]]
	* [[Rate of return]]		* [[Rate of return]]
			* [[Risk free rate of return]]
			* [[Risk premium]]
	* [[Weighted average cost of capital]]		* [[Weighted average cost of capital]]

imported>Doug Williamson: Correct typo: "to".

2021-02-07T12:34:42Z

Correct typo: "to".

← Older revision		Revision as of 12:34, 7 February 2021
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	*As a target Internal rate of return, that proposals need to exceed.		*As a target Internal rate of return, that proposals need to exceed.

	*As a discount rate (r) to apply in Net present value analysis, do discount the future cash flows.		*As a discount rate (r) to apply in Net present value analysis, to discount the future cash flows.

imported>Doug Williamson: Expand definition.

2021-02-07T12:34:01Z

Expand definition.

@@ Line 1: / Line 1: @@
-The rate of return, normally the company's weighted average cost of capital, used for determining the viability of an investment or project.
+A hurdle rate is an organisation's rate of return used for determining the viability of a proposed investment or other project.
@@ Line 5: / Line 41: @@
 * [[Cost of capital]]
 * [[Discount rate]]
 * [[Net present value]]
 * [[Rate of return]]
 [[Category:The_business_context]]
 [[Category:Corporate_finance]]
 [[Category:Investment]]

imported>Doug Williamson: Add link.

2020-11-18T14:45:21Z

Add link.

← Older revision		Revision as of 14:45, 18 November 2020
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	* [[Net present value]]		* [[Net present value]]
	* [[Internal rate of return]]		* [[Internal rate of return]]
			* [[Rate of return]]

	[[Category:The_business_context]]		[[Category:The_business_context]]
	[[Category:Corporate_finance]]		[[Category:Corporate_finance]]
	[[Category:Investment]]		[[Category:Investment]]

imported>Doug Williamson: Classify page.

2020-11-16T13:59:44Z

Classify page.

← Older revision		Revision as of 13:59, 16 November 2020
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	== See also ==		== See also ==
			* [[Cost of capital]]
			* [[Discount rate]]
			* [[Net present value]]
	* [[Internal rate of return]]		* [[Internal rate of return]]

			[[Category:The_business_context]]
			[[Category:Corporate_finance]]
			[[Category:Investment]]

imported>Doug Williamson: Layout.

2016-06-22T10:32:34Z

Layout.

← Older revision		Revision as of 10:32, 22 June 2016
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	The rate of return, normally the company's weighted average cost of capital, used for determining the viability of an investment or project.		The rate of return, normally the company's weighted average cost of capital, used for determining the viability of an investment or project.


	== See also ==		== See also ==
	* [[Internal rate of return]]		* [[Internal rate of return]]

imported>Administrator: CSV import

2012-10-23T14:19:48Z

CSV import

New page

The rate of return, normally the company's weighted average cost of capital, used for determining the viability of an investment or project.

== See also ==
* [[Internal rate of return]]