## Minimum rate of return is usually called the

managements minimum desired rate of return on an investment; also called the discount rate and required rate of return internal rate of return (IRR) the rate of return based on discounted cash flows that a company can expect to earn by investing in a capital asset. the interest rate that makes the NPV of the investment equal to zero (for capital budgeting) it represents the minimum acceptable rate of return on an investment acceptable rate of return on an investment weighted average cost of capital (WACC) an average of the (after-tax) cost of debt & equity capital for a firm; in general WACC is the appropriate discount rate to use for future cash flows associated with The Minimum Attractive Rate of Return (MARR) is a reasonable rate of return established for the evaluation and selection of alternatives. A project is not economically viable unless it is e xpected to return at least the MARR . The required rate of return is the minimum return an investor will accept for owning a company's stock, as compensation for a given level of risk associated with holding the stock. The RRR is also The required rate of return (hurdle rate) is the minimum return that an investor is expecting to receive for their investment. Essentially, the required rate of return is the minimum acceptable compensation for the investment’s level of risk. Corporate Finance Institute . The return, or rate of return, can be calculated over a single period. The single period may last any length of time. The overall period may however instead be divided into contiguous sub-periods. This means that there is more than one time period, each sub-period beginning at the point in time where the previous one ended. minimum acceptable rate of return: Indicates the minimum rate of return that a project manager considers acceptable before initiating a project. Managers apply this concept across a wide variety of projects to determine if the benefits or risks of one project exceed another possible project. A project manager is more likely to start a new

## 1. Introduction. The FIRR is an indicator to measure the financial return on investment of an (viii) The interest rate of the loan(s) is 10 % per annum and its principal is repaid by equal Project X involves at least six stakeholders; namely case that conditions of a loan for any project are usually agreed upon beforehand.

Generally, the minimum required rate of return for equity, also known as the company's cost of equity, can be determined by at least two different methods, the 1. Introduction. The FIRR is an indicator to measure the financial return on investment of an (viii) The interest rate of the loan(s) is 10 % per annum and its principal is repaid by equal Project X involves at least six stakeholders; namely case that conditions of a loan for any project are usually agreed upon beforehand. c Compare use of arithmetic and geometric mean rates of returns in per- There are at least two reasons why investors care about historical variability (the A commonly used reward- to- risk ratio is the Sharpe ratio, so- called because it was. The insurer declares a specific credited rate of return based on the investment the insurance company guarantees a minimum interest rate (also known as a Generally, fixed annuities involve less investment risk than variable annuities

### 1. Introduction. The FIRR is an indicator to measure the financial return on investment of an (viii) The interest rate of the loan(s) is 10 % per annum and its principal is repaid by equal Project X involves at least six stakeholders; namely case that conditions of a loan for any project are usually agreed upon beforehand.

On the lower-risk end of the spectrum, savings and money market accounts can offer fixed rates of return. Fixed rate means that the rate will not change over time.The opposite of that is a Minimum Acceptable Rate of Return The minimum acceptable rate of return must cover the cost of capital for the alternatives being considered If a firm has a mixture of debt and equity: Weighted average cost of capital establishes a floor for the minimum acceptable rate of return Minimum acceptable rate of return is usually between: The Minimum Attractive Rate of Return (MARR) is a reasonable rate of return established for the evaluation and selection of alternatives. A project is not economically viable unless it is expected to return at least the MARR. MARR is also referred to as the hurdle rate, cutoff rate, benchmark rate, and minimum acceptable rate of return.

### On the lower-risk end of the spectrum, savings and money market accounts can offer fixed rates of return. Fixed rate means that the rate will not change over time.The opposite of that is a

Executives, analysts, and investors often rely on internal-rate-of-return (IRR) calculations as one measure of a project's yield. Private-equity firms and oil and gas 7 Nov 2018 The return on a structured deposit is usually dependent on the These may include market indices, shares, interest rates, bonds or other Minimum amount for a fixed deposit can be less at $1,000. Principal (or capital) will be repaid in full at maturity or if bank redeems (or "calls") deposit before maturity. 8 Apr 2019 This is the main purpose of a required rate of return. The RRR represents the absolute minimum return on investment you would accept for that 8 Nov 2019 The rate of return can also be called the return on investment (ROI) or The rate of return is usually calculated using value created over a period of most companies set a minimum discount rate, and the calculated IRR is

## If the expected return of an investment does not meet or exceed the required rate of return, the investor will not invest. The required rate of return is also called the hurdle rate of return. Required Rate of Return Explanation. Required rate of return, explained simply, is the key to understanding any investment.

24 Jul 2013 The required rate of return, the minimum return the investor will accept for The required rate of return is also called the hurdle rate of return. Definition: Required Rate of return is the minimum acceptable return on investment When calculating the required rate of return, investors look at overall market The Iron Butterfly Option strategy, also called Ironfly, is a combination of four 25 Feb 2020 The required rate of return is the minimum return an investor expects to achieve An investor typically sets the required rate of return by adding a risk premium to The required rate of return is also known as the hurdle rate. 13 Nov 2018 A bond's return on investment or rate of return is also known as its yield. Keep in mind that people usually purchase stocks through their with all-bond portfolios showing the lowest average annual return at nearly half that Benefit/cost ratio is most commonly used. ▫ Projects generally have longer lifetimes, so perpetual Present worth, incremental rate of return, and benefit/ cost.

minimum acceptable rate of return: Indicates the minimum rate of return that a project manager considers acceptable before initiating a project. Managers apply this concept across a wide variety of projects to determine if the benefits or risks of one project exceed another possible project. A project manager is more likely to start a new On the lower-risk end of the spectrum, savings and money market accounts can offer fixed rates of return. Fixed rate means that the rate will not change over time.The opposite of that is a Minimum Acceptable Rate of Return The minimum acceptable rate of return must cover the cost of capital for the alternatives being considered If a firm has a mixture of debt and equity: Weighted average cost of capital establishes a floor for the minimum acceptable rate of return Minimum acceptable rate of return is usually between: The Minimum Attractive Rate of Return (MARR) is a reasonable rate of return established for the evaluation and selection of alternatives. A project is not economically viable unless it is expected to return at least the MARR. MARR is also referred to as the hurdle rate, cutoff rate, benchmark rate, and minimum acceptable rate of return. If the expected return of an investment does not meet or exceed the required rate of return, the investor will not invest. The required rate of return is also called the hurdle rate of return. Required Rate of Return Explanation. Required rate of return, explained simply, is the key to understanding any investment.