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hurdle rate |
Also found in: Financial, Wikipedia, Hutchinson | 0.03 sec. |
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hurdle rate n (Economics, Accounting & Finance / Banking & Finance) Finance the rate of return that a proposed project must provide if it is to be worth considering: usually calculated as the cost of the capital involved adjusted by a risk factor How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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| USPharm's consistent practice has been to use a risk-adjusted hurdle rate to evaluate its potential R&D projects (including the development of T) and determine which will receive funding. A hurdle rate refers to the return the company requires before it will invest in a product or operation. Therefore, if your internal rate of return exceeds the hurdle rate, then your project is attractive, as it is expected to result in a positive net present value. |
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