HURDLE RATE Definition

Bookmark and Share

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.

Learn new Accounting Terms

A is the fifth letter of a Nasdaq stock symbol that specifies Class A shares.

UNQUALIFIED OPINION is an independent auditors opinion that a companys financial statements comply with accepted accounting procedures. See QUALIFIED OPINION.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.