ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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HURDLE RATE Definition
HURDLE RATE is a term used in the budgeting of capital expenditures meaning the REQUIRED RATE OF RETURN in a DISCOUNTED CASH FLOW analysis. If the expected rate of return on an investment is below the hurdle rate, the project is not undertaken. The hurdle rate should be equal to the INCREMENTAL COST OF CAPITAL.
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DOUBLE DECLINING BALANCE DEPRECIATION see DECLINING BALANCE DEPRECIATION METHOD.
TARGET is the goal intended to be attained and which is believed to be attainable, e.g. sales target, margin target, or profit target.