## Minimum acceptable rate of return for an investment decision is called the

Required Rate of Return (RRR) The minimum expected yield by investors require in order to select a particular investment. Required Rate of Return In securities, the minimum acceptable rate of return at a given level of risk. Different investors have different reasons for choosing their required returns. Normally, it is determined by a person's or E. Accounting rate of return. 4. A minimum acceptable rate of return for an investment decision is called the: A. Internal rate of return. B. Average rate of return. C. Hurdle rate of return. D. Maximum rate of return. E. Payback rate of return. 5. The time expected to pass before the net cash flows from an investment would return its initial Start studying Accounting 2 - Quiz 5. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Minimum acceptable rate of return for an investment. also called the hurdle rate. Internal rate of return. In business and for engineering economics in both industrial engineering and civil engineering practice, the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other projects.

## 40. A minimum acceptable rate of return for an investment decision is called the: A. Internal rate of return. B. Average rate of return. C. Hurdle rate of return. D. Maximum rate of return. E. Payback rate of return. 47.

28 Jan 2020 However, the required rate of return (RRR), also known as the hurdle rate, is the minimum return an investor will accept for an investment or rate of return, the benefit-cost ratio and the modified internal rate of return. The first As a result, the return on investment is sometimes called the accounting return. In addition, investors or management must specify an acceptable value for return on minimum attractive rate of return (MARR) or hurdle rate. The IRR is a Accounting Rate of Return (ARR) is the average net income an asset is capital budgeting decisions, whether or not to proceed with a specific investment (a project, rate of returnHurdle Rate DefinitionA hurdle rate, which is also known as is acceptable because the company will earn at least the required rate of return. investment decisions based upon their individual risk preferences is presented for data The simplified, so-called "seat of the pants" methods described below are for the wide variation in the minimum acceptable rate of return for projects;.

### g) a set of decision rules which can differentiate acceptable from unacceptable r = the discount rate/the required minimum rate of return on investment A set of cash flows that are equal in each and every period is called an annuity.

Accounting Rate of Return (ARR) is the average net income an asset is capital budgeting decisions, whether or not to proceed with a specific investment (a project, rate of returnHurdle Rate DefinitionA hurdle rate, which is also known as is acceptable because the company will earn at least the required rate of return. investment decisions based upon their individual risk preferences is presented for data The simplified, so-called "seat of the pants" methods described below are for the wide variation in the minimum acceptable rate of return for projects;.

### 11. A minimum acceptable rate of return for an investment decision is called the: a) internal rate of return b)average rate of return c)hurdle rate d)maximum rate e)payback rate 12. yoho company reported the following number for one of its divisions for the year; average total assets of $5,800,000;

A company's required rate of return, typically its cost of capital is called the: Hurdle rate An estimate of an asset's value to the company, calculated by discounting the future cash flows from the investment at the project's required rate of return and then subtracting the initial amount of the investment, is known as: What is the Required Rate of Return? 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 is the minimum acceptable compensation for the investment’s level of risk. The required rate of return is a key concept in corporate finance and Question: A Minimum Acceptable Rate Of Return For An Investment Decision Is Called The: Select One: 1. Internal Rate Of Return. 2. Average Rate Of Return. 3. Hurdle Rate Of Return. 4. Maximum Rate Of Return. 5. Payback Rate Of Return.

## SHEET FINAL EXAM Practice Questions w Answers - 1 Capital budgeting decisions usually involve analysis of A Cash outflows only B Short-term investments

What is the Required Rate of Return? 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 is the minimum acceptable compensation for the investment’s level of risk. The required rate of return is a key concept in corporate finance and Question: A Minimum Acceptable Rate Of Return For An Investment Decision Is Called The: Select One: 1. Internal Rate Of Return. 2. Average Rate Of Return. 3. Hurdle Rate Of Return. 4. Maximum Rate Of Return. 5. Payback Rate Of Return. Hurdle Rate: A hurdle rate is the minimum rate of return on a project or investment required by a manager or investor. The hurdle rate denotes appropriate compensation for the level of risk

Decisions using Time Value of Money Models Invest in a machine in return for reduced operating costs or greater sales in the future. a Minimum Acceptable Rate of Return (MARR) (for the lender) or The Net Present Worth method, also called the Present Worth (PW), method compares all cash flows only after they If the NPV is positive then a project is accepted for investment. The decision rule regarding IRR is that projects which have a rate of return greater than the IRR should According to the IRR rule, L is acceptable if r is less than 18.1 percent. Decision making. In many companies there is a minimum ROI threshold for new investments. This is sometimes called a “hurdle rate.” Some organizations even (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 Start studying Accounting (RETL). Learn vocabulary, terms, and more with flashcards, games, and other study tools. A minimum acceptable rate of return for an investment decision is called the: a. Internal rate of return b. Average rate of return c. Hurdle rate d. Maximum rate e. Payback rate